Create wealth by investing in Mutual Funds!
Since childhood, we are told to save our money! But did we? A majority of us will say ‘No!’ to this question. I’d say ‘better late than never’! Just saving money now won’t help you create wealth! We need to multiply it along with saving! That’s ‘investing’. We live in a digital age. Gone are the days when one had to fill out ‘n’ number of forms to complete KYC norms and what not. Today it can be done in a matter of a few clicks! You can get started by investing just ₹100 per month! Read on to know how to create wealth through mutual funds.
How do mutual funds help you realize your dream and create wealth?
Investing directly in share market needs knowledge, time and patience! But it helps you make millions of bucks without starting a business! Does that mean if one wishes to create wealth doing nothing, he’ll have to study business and stock market? No!
Mutual Funds comes in! If we check the average return on mutual funds for the last 20 years, it’s mind-blowing.
Let’s take an example of Reliance Growth Fund. It was started 22 years ago. This year its NAV touched Rupees 1000 mark. It’s sip returns chart shows that an investor who had put in ₹10 in the fund at its inception would have seen his fund grow over 100 times in nearly 22 years. One lakh invested in this fund at its inception would have been worth 1 crore today. This is an example of the best sip to invest for highest growth.
Create wealth by investing in Mutual Fund
According to Wikipedia, “A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities”. In layman language we can say: It is a fund which comprises of investors'(your) money, which a professional and experienced fund manager manages, who knows how much, when and at what price to buy or sell a share in market on your behalf so that you don’t make mistakes, lose your money and time and helps you create wealth!
One advantage of mutual funds is that they provide a higher level of diversification, they provide liquidity, has the power of compounding and furthermore, they are managed by professional investors(known as fund managers). On the negative side, investors in a mutual fund must pay nominal fees and expenses.
Best performing mutual funds last 10 years
- Reliance Growth Fund. Fund Manager: Sunil Singhania.
- Franklin India Blue Chip Fund. Fund Managers: Anand Radhakrishnan & Anand Vasudevan.
- HDFC Equity. Fund Manager: Prashant Jain.
- Birla Sun Life Advantage Fund. Fund Manager: Satyabrata Mohanty.
- Franklin India Prima Fund. Fund Manager: R Janakiraman.
Create wealth by investing in Stock Market
The stock market is an exchange where you buy shares of a company through a broker. You pay a small fee for a brokerage but this is the way which can bring you a fortune if you invest in a company which grows to be a billion-dollar company. Infosys started on 7 July 1981 with an initial capital of ₹10000 and on January 12, 2017, its market capitalization was $34.38 Billion. If one had invested in this company he would already be a billionaire! This was just an example. You can make 1 crore in 10 years very easily.
There are many brokers out there but a majority of them has a high brokerage. I’d recommend Zerodha. It is a discount brokerage. Most noteworthy buying and selling equity shares is free of cost. Yes, zero brokerage. Bear with me and I’ll disclose the secrets of becoming a billionaire. 🙂
The central government has re-introduced the 10% long-term capital gains (LTCG) tax.
How to get started investing?
First of all, one needs two things to get started!
- PAN Number
- Bank account
In addition to these, one needs to get KYC verification done which is a 2 minutes step with Aadhaar OTP method if one has an Aadhaar Number.
Register on Zerodha to get started! Invest…
You can invest ₹100 per month in Reliance Top 200 Plan and Reliance Small Cap Funds. They are awesome and have very good returns!
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