“ Itna sa hi toh hai” a so common
line for anything we loose. The bai spills some milk or your child drops some
food on the floor, the leaking tap or even the cooking gas wasted when we cook
our food in open vessels. The increasing shortage of small changes is becoming
prominent in our small riksha rides where we let go the loose change. Also at
times we are so relieved if someone gives us discount that we are ready to
forget the quality of the product. It is our increasing mentality to adopt the
route of mental peace and ease of doing things. The same principle we even
adopt for our investment purpose. Go for something that is simple to execute
and fast to accomplish. It may even that for that you have to loose some good
percentage of profit but that is fine with you as long as you can gain some
mental gratification.
The long run story in short ..
We need to change the style of
investment. We need to understand that over long run- the only thing that gives
us better returns is constant investment and compounding benefit. If we don’t
take advantage of either of them then we shall not be able to earn as much as
profit we can from our investments as we could if we diversified our
investments well.
Lets us at a common example,
Suppose four different people make
annual investments of Rs 150000/- in one of these investments each, then let us
look at the amounts collected by them at end of the tenure.
|
Instrument
|
Fixed Deposit
|
Direct Equity
|
Equity Mutual Funds
|
PPF
|
|
Returns
% pa
|
7%
|
13%
|
12%
|
8%
|
|
Time
|
10
|
10
|
10
|
10
|
|
Returns
|
Rs.
2,95,073
|
Rs.
5,09,185
|
Rs.
4,65,877
|
Rs.
3,23,839
|
|
Tax
|
taxable +TDS
|
No tax after one year
|
No tax after one year
|
Nontaxable and locked in for 15 years
|
So, what seems like a small simple
decision can prove to be a big hole in your pocket in the long run. So shun all
your laziness today and make a diversified portfolio today. Plan your goals and
give your portfolio a better design.
Thanks and Regards
Team
Email: saarthifp@gmail.com
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