People use to come and ask me "Is it safe to invest in Stock Market??". They don't want to take risk for the money which they earned by truly working hard for it.
This article is dedicated to all such investor who could earn more by parking their money in right investment instruments.
Please take a look at the below year on year comparison for the Sensex only. You'll see average return of 22 %. Even if you don't know anything about stock market this is just simple calculation and you would have earned lot of money by investing in Equity and Equity related instruments over the period.
Above comparison shows that investing in the stock market for longer period always rewards you with handsome return. Make investment as your habit and do it for long term.
For new investor or people who don't have time to check market pulse daily, I would recommend to investment in Mutual Funds. You'll be amazed by some of the Mutual Fund Performance.
Below table gives you idea about the enormous wealth a MF could create for you over the period of time.
I would advice all the small investor to start SIP - Systematic Investment Plan to invest into MF schemes. This is the best method to start investing in Equity. This is same thing like recurring deposit you are aware of. Only difference is the return you get here. In recurring deposit you'll hardly get return of 6 % which has no comparison with MF returns where you'll get much more return for your valuable money. I'll come up with new article about MF schemes which has great track record for creating wealth for investors.
In country like India we have higher inflation. Most important if you'll check Food Inflation which is necessary for common man it's around 18 %. Do you think parking your money into Bank FD's would help you to sustain in the environment?
I won't answer this question. Take your own call and now rethink if investing in stock market or equity related investment instruments is risky or You are at much higher long term risk by not to investing in the stock market.
I'll come up with some more articles which will really change the way you think investing in the stock market.
This article is dedicated to all such investor who could earn more by parking their money in right investment instruments.
Please take a look at the below year on year comparison for the Sensex only. You'll see average return of 22 %. Even if you don't know anything about stock market this is just simple calculation and you would have earned lot of money by investing in Equity and Equity related instruments over the period.
Sensex Valuation
| |||
|---|---|---|---|
Year | First Trading Day of Jan | Last Trading Day of Dec | % Change |
1991 | 999.26 | 1908.85 | 91.03 |
1992 | 1957.33 | 2615.37 | 33.62 |
1993 | 2539.62 | 346.06 | 1.75 |
1994 | 3465.86 | 3926.90 | 13.30 |
1995 | 3932.09 | 3110.49 | -20.89 |
1996 | 3127.94 | 3080.20 | -1.37 |
1997 | 3260.56 | 3658.98 | 12.22 |
1998 | 3694.62 | 3055.41 | -17.30 |
1999 | 3060.34 | 5005.82 | 63.57 |
2000 | 5375.11 | 3972.12 | -26.10 |
2001 | 3955.08 | 3262.33 | -17.52 |
2002 | 3246.15 | 3377.28 | 4.04 |
2003 | 3390.12 | 5838.36 | 72.23 |
2004 | 5915.47 | 6602.69 | 11.62 |
2005 | 6679.2 | 9397.93 | 40.70 |
2006 | 9390.14 | 13708.34 | 45.99 |
2007 | 13942.24 | 20286.99 | 45.51 |
2008 | 20300.71 | 9647.31 | -52.48 |
2009 | 9958.22 | 17464.81 | 75.38 |
Above comparison shows that investing in the stock market for longer period always rewards you with handsome return. Make investment as your habit and do it for long term.
For new investor or people who don't have time to check market pulse daily, I would recommend to investment in Mutual Funds. You'll be amazed by some of the Mutual Fund Performance.
Below table gives you idea about the enormous wealth a MF could create for you over the period of time.
Value of Rs 1 Lac - Invested in NFO
| ||||
|---|---|---|---|---|
Company Name | Launch Year | Initial NAV | Present NAV | Today's Valuation |
| Birla Sun Life Mid Cap Fund | Oct'02 | 10 | 104.84 | 10,48,400 |
| Sundaram BNP Paribas Select Midcap Fund | July'02 | 10 | 134.99 | 13,49,900 |
| Reliance Growth Fund | Oct' 95 | 10 | 427.35 | 42,73,500 |
I would advice all the small investor to start SIP - Systematic Investment Plan to invest into MF schemes. This is the best method to start investing in Equity. This is same thing like recurring deposit you are aware of. Only difference is the return you get here. In recurring deposit you'll hardly get return of 6 % which has no comparison with MF returns where you'll get much more return for your valuable money. I'll come up with new article about MF schemes which has great track record for creating wealth for investors.
In country like India we have higher inflation. Most important if you'll check Food Inflation which is necessary for common man it's around 18 %. Do you think parking your money into Bank FD's would help you to sustain in the environment?
I won't answer this question. Take your own call and now rethink if investing in stock market or equity related investment instruments is risky or You are at much higher long term risk by not to investing in the stock market.
I'll come up with some more articles which will really change the way you think investing in the stock market.
Happy Investing !!
2 comments:
True.
Good Article.
Good Analysis Pratik !!
Post a Comment