Since the market has You turned from its Bottom in last march 2020 Many People developed sudden interest for equities . We have been seeing lot of new enthusiastic investor's , specially the Younger Generation wanting to have taste of it . While its Good sign for the Overall Economy.When people stop dumping there surplus money in Fixed deposits or Postal Deposits then that money do not actually circulated in the economy to large extent. In case of Investments in Mutual funds / Ulips / Direct equity he money is actually helping Some entity to get fund for their expansion , capacity increase etc . When that happens ultimately it generates more employement in the connected systems .
So Its really Good if people are now realising the need for the Equity exposure . One more reason can be considered for the growing interest to equity , Falling interest rates in Fixed deposits . Its estimated that in india approx 2 lakh Cr+ Worth Money is blocked in Fixed deposits . Some day we will have to live without the fixed returns . If you are getting assured returns which are not enough for your growing expenses then its as good as Zero returns .. Right .
As Markets reaches to its peak level every one started guessing about the future levels . All of you who are reading this must have the same thought , Let me answer it ..
To know when the Current Amount ( Number ) will be double we use 72 formula , Example -- You invested 5000 Rs in FD with return of 7 % THEN in how much period it will get dobuble ?
Ans - 72 / 7 % = 10.2 Yrs .. If by same logic Currently Index ( Sensex ) at 52000 Approx , Now if we assume Different average returns then ..
For Avg returns of 7 % similar to above -- 10.2 Yrs
Avg returns of 10 % s -- 7.2 Yrs
Avg returns of 12 % s -- 6 Yrs
Avg returns of 15 % s -- 4.8 Yrs
Avg returns of 20 % s -- 3.6 Yrs
Are you realising what is going to happen ... Yes ..It will look unbelievable but it can become reality..
Even if we consider 10-12 % Avg returns in future then still in worst condition we may Guess its Double level in next 10-15 yrs .. Right !!
Feeling Too Excited .. its natural But .. wait .. This is not the key point that Sensex will reach 100000 or 200000 in next 10-20 Yrs ..
Wealth Creation Journey
As above chart Shows , In order to get the real Benefit of SENSEX future journey Its Very Important For you to Have Enough Amount of SIP or Equity Exposure , Then only you can make WEALTH , If you are happy With 5000 Rs Sip then it may not give you Good Fund size if we consider 10 yr Investment period .
The More you Invest the more it will Grow That's the Simple FORMULA , For all of you Who want to Have 1,00,00,000 (become Crorepati ) End of the 10th Year Then This the Secret , Dont Think of Current Conditions , Economy and valuations etc as we are looking For 10 yrs later Future Goal .
In case you are not ready to start 50000 Sip Now then Start with atleast 20-30k and increase it as early as possible to 50K-100000 /month Levels ..
Some of you might be Interested in Direct Equity , For Those also its Must to have Enough Investments . If you wish to invest few thousands then Its better to Go with Mutual funds Route , For building your own portfolio to capture Future massive Doubling Journeys Impact of Sensex You must need to invest Minimum 10 Lakhs + and add it as much as you can , Offcourse as you are diretly investing . .Creating Right Portfolio is equally important . TAKE Right Advisors Guidance for same ... In case you are not capabale of Doing it ..
So The Ball is in Your Court and The one who is adequately prepared surely stands to Win The Game !