Thursday, 5 February 2015

Markets at all time high…..invest in equity or not?
  • Equity is like vegetable in our thali –
We all like junk, spicy and tasty food. But it’s the vegetables that increase our resistance power and protect our body from various infections. Same is with investment in equity, like vegetables, it protects us from inflation. It helps build our wealth in long term, hence fulfilling our dreams of peaceful living.
  • Balanced team gives good results –
As in cricket match, if all the players are batsman or all are only bowlers it’s not possible to win the match. To be a winner, the team should have a combination of batsman, bowler, fielder and wicket keeper. Same goes with asset allocation - equity, debt, real estate, gold all form a balanced portfolio.
  • Be a part of ‘MAKE IN INDIA’–
Indians are good savers, age old tradition, in real estate and gold. But investing in equity markets, money is indirectly invested in industrial, manufacturing, service sector, which will contribute to the strengthening of our economy and build our nation.

Period 
Years
Sensex
Returns
Highest/ Lowest
1979 – 2015
35
100 – 29000
18% p.a.
Highest
1979 – 2009
30
100 – 9000
16% p.a
Lowest


If we compare our Investments of Gold / FD    Vs     Equity -

Gold / FD
Value of 1 lakh
Equity
Value of 1 lakh
Returns / value in last 30yrs
9%
13,00,000
16%
85,00,000
(-) Inflation
8%
(-) 10,00,000
8%
(-)10,00,000
Returns in hand
1%
3,00,000
8%
75,00,000

We find a huge difference between the value we get in Bank FD/Gold vs Equity. In last 30, 15, 10, 5 years or even in last 5 months equity market has corrected so many times…generally 5% to 35%, means average 15% of our money goes upward or downward. But ultimately it goes upward as our economy grows.
  • Accept equity volatility as your friend & invest regularly.
  • Win the investment cricket by building a good team of all asset class.
  • Focus long-term on health by eating vegetables & on wealth by having equity participation. 


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