Things to avoid while investing in Equity

I loved to read this message received on my whtaspp… Please Keep in mind these 20 things must avoid while investing in direct equity or equity mutual funds.

1) Don’t delay your investing
2) Don’t invest for short periods
3) Don’t be greedy when markets rock
4) Don’t be fearful when markets suck
5) Don’t check your returns too oftern
6) Don’t listen to tips
7) Don’t watch CNBC
8) Don’t follow the herd
9) Don’t get affected by past events
10) Don’t get affected by recent events
11) Don’t invest to save taxes
12) Don’t invest in a single asset class
13) Don’t invest without guidance
14) Don’t blame the markets
15) Don’t flirt with your investments
16) Don’t invest without ascertaining your goals
17) Don’t invest in too many schemes
18) Don’t invest without acquiring basic education
19) Don’t invest in FD for the long term 
20) Don’t invest in Equity for the short term

Source : http://nextleveleducation.in/

Mutual Funds Sahi Hai !!!

Stock market is a dangerous, risky place to invest but rewards are sometimes equally great.
Have a look at some companies where investors have lost a lot of money.
10,000 invested in Videocon Industries in 2012 is today Rs.610
10,000 invested in Religare Enterprise in 2007 is today Rs.554
10,000 invested in Lanco Infratech in 2006 is today Rs.91
10,000 invested in Reliance Communication in 2006 is today Rs.156
10,000 invested in Kingfisher airlines in 2007 is today Rs.0
The list is very long…
There are numerous examples that have destroyed investors wealth even after staying invested for many years.
So don’t get Carried away by a few success stories of Wealth Creation. It is not suitable for novice and amateur investors.
It’s better to leave the job to the experts and experienced money managers.
That’s why it is proclaimed
Mutual Funds Sahi Hai

An Interesting Data !!!

An interesting perspective, I received this on my WhatsApp last week….
 
US By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980. These  20 years was also the Time when Warren buffet, Paul Tudor Jones, George Soros were Created.
 
In 2017 only 3% Indian owns Equities..
 
 
In 1979, the BSE Index was 100
 
Today it is over 33,000
 
That is a return of over 17% per annum.
 
If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum
 
Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average, 
 
Inflation, as measured by the CPI, has been in the 8% range
 
Add the two together and you get 6.3% + 8% = 14.3%
 
Let’s round that down to 14%
 
This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.
 
So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum. 
 
Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.
 
 If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?
 
Sensex 4,076,470 doesn’t seem extraordinary now, does it?
 
“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali” –
Rakesh Jhunjhunwala