Make SIP your long-term companion!

 

Make SIP your long-term companion!

The early bird does get the worm. The next one however, has to search for food.

When you look into our busy lives, many of us live with the misconception that 'Since I don't earn enough, I don't really have much to invest! Plus, who's in a hurry?' This 'so called' belief leads to one thing that we don't pay attention to. Taking action early on that is. Yes! We all have dreams that we hope to fulfil but the fact remains that whether it is about providing the best education for your child or leading a good retired life, we simply don't do enough to realise these dreams.

But seriously? Who has the time? Wouldn't it be easier if someone guided you to make informed decisions? Here's where Systematic Investment Planning (SIP) comes into the picture.

How would my SIP work?

It's an effective way to accumulate wealth in an organised manner through regular investments in mutual funds. Even if you aren't raking in the moolah, it doesn't really matter, because you can start your investment journey with something as low as Rs.500. That's the price of two movie tickets on a weekend!

Don't fret during a downturn or a market slump. An SIP works there too. It simply allows you to buy mutual fund units at a lower price and potentially earn higher returns when the market sees an upswing.

Stay on the Road.

Most of us begin our investing journey with a lot of enthusiasm but get lost along the way. We fail to adhere to the monthly saving system and let our investments slowly dwindle which in turn, reduces the health of your corpus.  Investing through an SIP, allows you to maintain your monthly investment pattern, which is easier than trying to collect a lump sum and investing it at the end of a certain period.  Also, you can link it to how much money you have and increase your monthly investments as per your goals.

Want to make it work? Connect an SIP with your personal goal

An old adage says, "You can't plough a field simply by turning it over in your mind." This stands true for your investments also. From saving for your child's education to keeping your eye on a trip you've planned, you can decide to invest in a short-term, medium or long-term plan. All you need to think about is how much do you need and when? However, be conscious of the mix you have chosen to invest in as it depends on your investment horizon. Equity funds are known to be a good tool for long-term investment, but if you are looking at something short-term then debt funds may suffice.

Starting Early

Imagine if you got a head start in a race called life? Would it not make the run a bit easier? That's exactly what you should do. Start as early as possible small amounts. Consistent efforts and focus on your end goal is the stuff winning stories are made of. The writing is clear on the wall. The sooner you begin investing, the better.

This is how SIPs may help you in your journey to financial freedom. They provide you with the much needed discipline and convenience to create a healthy corpus. Hence they are like your Good EMI.

www.nextportfolioindia.com

Quite thought provoking indeed...

Quite thought provoking indeed...

Quite thought provoking indeed...

1) Dhritharashtra was attached to his eldest son ,  Result : Destruction of all his sons

2) Kaikeyi was attached to her son , Result : Despised by her son and separated from him

3) Dushasana was attached to his Duryodhan , Result: His painful end due to his brother

4) Kumbakarna was attached to Ravana, Result : His own destruction due to Ravana's evil deed

5) Duryodhana was attached to his crown , Result : Was not alive to enjoy the kingdom that he fought for.

6) Vaali was attached to his strength , Result : His strength could not protect him from reaching his end

The list can go on ....

What is the learning ?

Whatever we are attached to is a clear indication of where we our life is heading and how it is going to end

We create the blue print of not only our own destruction but also of whatever we are attached to .

So what is the solution?

Be attached ! !

But just change the object of attachment

Be like HANUMAN JI - who was only attached to the Lord

Be like VIDURA - who was only attached to Dharma

This will automatically make us objective and detached from everything else and we will be positive contributors to society as well

In personal finance, till such time we are attached to money, our greed and fear between themselves will wreck huge destruction upon our money by making us insatiable speculators.

Hence stop chasing money, chase meaningful goals like children's education, their marriage, their career, your retirement, your dream business, your desire to give back to the society.

Any of these is better than chasing money for the sake of money.

www.nextportfolioindia.com

It is never easy

 

It is never easy

For those of you who follow financial media would have been aware of China scare, commodity crash, market corrections etc.

People listen more to financial media when going gets tough. Financial media amply your fear during such times.

The more you listen to media, the frequently you keep checking your portfolio; it makes it difficult not to react. Reactions during such times cause irreversible damage to one's wealth creation goal.

As I always say making money from equity is simple but not easy.

You need to learn to ignore worries of the world. There has always been some problem or another which dominate our mind space. There are very rare spells when nothing bad seems to happen.

'Buy & hold' would look easy when the market is going up. The real test comes during these times of corrections.

Unless one has very strong emotional control, making money from the market is tough.

The 3 key traits required to create wealth are long term orientation, patience and discipline.

Time can do wonder to your portfolio and wealth if you learn to ignore volatility.

Most people fail because they yield to fear and panic during bad times, act impulsively due to volatility and forget long term picture.

India would grow and do very well in the next few decades. This would get reflected on corporate performance and hence stock markets. If you can get this broader picture correct, then why worry about day to day news or short term outlook?

Successful investors take a broad view of the future and learn to ignore every day volatility. India has been growing well for last few decades and would continue to scale new heights in the decades to come. Equity is for you only if you have faith in future.

As I've pointed with data, only a small percentage gets rich from markets. These are the ones who have patience to live through ups and downs, follow investment discipline irrespective of bull and bear markets and stay invested for decade or decades.

For most of us, equity is the only way to create financial independence.

Equity investing demands lot of emotional maturity. If you have emotional maturity, creating wealth is simple by following few elementary steps. If you don't have emotional maturity, not only that you would not create wealth but may lose some as well.

Getting rich from market has never been easy.

We will trying to ensure that all our clients create huge wealth from markets in the long run.

For that we need client's co-operation of staying the course ignoring ups and downs.

If you can take care of your behaviour, wealth creation would automatically be taken care 

www.nextportfolioindia.com

                        

Don't Waste your time looking back on what you've lost

 "Don't waste your time looking back on what you've lost. Move on, for life is not mean to be traveled backwards."

The importance of arriving early to your interview cannot be overstated. As much as possible, try to arrive at least 30 minutes before the actual interview to give you time to psych up and compose yourself. Arriving late may signal that you are not ready to handle commitments that the job entails.

Similarly investment in equity, if you try and time the market, you are going to get burnt badly. The trick in a bull market is always to get invested and to stay invested and not to play this waiting game or not to play this game where market will go up or go down or try and forecast that because you rarely are successful in doing that. Don't let the state of the market get to you. Don't let emotions dictate your investment style and pattern. The market will go through roller coaster periods. Don't follow the crowd.

You need to buy great quality businesses, spend more time focusing on that rather than trying to time the extent of this market. Start Investing through SIP, It's a simple yet a powerful tool for savings and wealth accumulation. It helps you the discipline of investing regularly and that should help on your way to achieving your financial Goals.

www.nextportfolioindia.com