हिंदी में यह आलेख देखने के लिए, यहां क्लिक करें
As per a report published in 2018, 73% of India’s wealth is in the hand of just 1% of population.
Do we know who are these 1% and where do they put their money? Where rest 99% of people keep their money?
Well, most of these 1% are owner of some or other companies. Most of these companies are listed in Stock Market. And, these companies generate huge annual profits. These are the companies that take loans from bank at 15% to 20% interest rate and generate 20% to 30% annual profit. While, rest of the 90% public keep their savings in Fixed Deports, Gold, Savings account etc where returns over last 30 years has been around 9% (7% at present). As per another survey, only around 3% of population of India participate in Stock Market / Mutual Funds.
Then, who will become rich? Those who generate 20% to 30% returns annually or those who are satisfied with 7- 9% annual returns? Please think.
There are more 5000 companies listed in Stock Market and this number is growing every year. These companies are holding major wealth of India. If we can become partner in these companies, we can also be part of the returns generated by these companies. Please note that, on an average, ownership of promoters is 50% to 70% in these companies, and government has mandated at least 25% shares in these companies should be with public.
Not all can become Reliance or TATA, but one can invest in these companies to grow ones money with the rate these companies grow.
But how can one become partner in these companies? And, how much money one needs to become partner in these companies? How can one know which company is good to be partner with?
Well, Mutual Fund is the easiest route to become partner in these companies. One can start with as low as Rs 1000 to become part owner in these companies. And you do not need to know much about these companies, Mutual Fund appoints experts to study the performance of these companies and Mutual Fund managers put money in mainly those companies where returns are expected to be good.
But we hear that Stock markets are risky, there are many who have lost their money. How one can be secure ones money in stock market?
Well, mainly those lose money in Stock market who just are too greedy, don’t have discipline and invest in stock market by bad advice.
Let me say that out of 5000 companies in Stock market, if one chooses only top 50 or top 100 performing companies to invest into, then there can be no chance of loosing money. One need to study the performance of these top 100 companies. Also, the list of top 100 companies changes every year, so one need to know this list as well. Mutual Fund comes to help here. With a little fee, Mutual Fund houses track all these parameters and switch our investment on regular basis, so that in short term value of ones investment can be lower but in longer term, one will always make money.
What is long term and how long is long term?
If you are looking to make good returns from Mutual Fund, plan to be in market for at least 5+ year. One invests in Endowment plans of Life Insurance companies for 15 to 20 years, similarly, in case of Mutual Funds also you need to give time to fund managers to grow your investments also. Investment in Stock/Mutual Fund can be risky in short term; but in long term, MF returns beat any other asset class returns.
Can we know what returns Stock market / Mutual Fund has given in long term?
If you had invested Rs 100 in the Year 1979, then value of 100 in 2018 would have been:
- Rs 2,303 in Fixed Deposits (i.e effective return of 8.24%)
- Rs 4,508 in Gold (i.e Effective return of 10.09%)
- Rs 34,442 in Stock Market (i.e Effective return of 15.89% in Sensex)
So, 95% of population has been trying to keep its money in secure FD and remained poor, while 1% of population has been putting money in insecure Stock Market became rich and super rich.
If Mutual Funds are giving such a good return, then how much should I invest in Mutual Fund?
Your investment exposure to Mutual Funds should vary as per your age. Subtract your age from 80. Whatever number you get, you should invest that much % of your savings in Mutual Fund on monthly basis.
For example, if you are 40 years of age, you should invest (80 – 40 = 40) 40% of your monthly savings in Mutual Fund through SIP route.
I do not have Mutual Fund account and I do not know how to Invest in Mutual Fund. I am too much busy to think about at present.
Well, you do not need to think about it. Just share 3 documents and some additional information with us, your account will get setup in 30 minutes and you are ready to go. How to invest in Mutual Fund in 30 Minutes.
If you are too busy to take out even 30 minutes of your time for investment, then you are the one who are happy to be among those 95% and you do not want to join those 3% of richer category.
Happy Investing. Click HERE to start your investment today.