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Wednesday, December 5, 2012

SIP Returns: Hidden Gems @ 45.7%, BSE SC Index @ -0.5%

Dear Reader,

If we look at major indices of 2 years back, Investors have not made money from stock markets. Major indices like Sensex and Nifty have moved no where. On 1st Dec 2010, Sensex was at 19,850 and today closed at 19392 giving negative returns of -2.3%. Small Cap Index and Mid Cap Index have seen a deeper cut during the same period.

Moreover, big daddies of dalal street, companies like Reliance, SBI, Infosys and L & T have given negative returns of -16%, -27%, -22% and -18% respectively to investors who invested in them on 1st Dec'10.
We always suggest salaried employees as well as businessmen / entrepreneurs to invest via SIP (Systematic Investment Plan) route. Simply get some savings from your monthly income and Invest in equities for long term. SIP not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.

Its simple, invest some portion of your monthly income in good companies without  timing the stock market and you will definitely get rewarded in long run.

Just take care of Basic Principle of Investing in Equities:

1. Invest in stock market with a long term view (3 - 7 years or more).
2. Invest in companies which are fundamentally strong with scalable business.
3. Follow disciplined approach by Investing regularly in equities.
4. Build a diversified portfolio by investing in small & mid cap companies.
5. Avoid frequent buying / selling of stocks, Its trading not Investing!
6. Review performance of your holding companies at least once a year to decide whether to buy / sell or hold.

Lets review how SIP approach have benefited our Hidden Gems members during last 2 years. Below is the table which illustrates value of Rs. 10000 invested (every month) in Hidden Gems (Unexplored Multibagger Small Cap Stocks) vis a vis value of Rs. 10000 invested in BSE Small Cap Index during last 2 years.

As illustrated, average returns of Saral Gyan Hidden Gems during last 2 years is 45.7% compared to -0.5% of BSE Small Cap Index. Investment of Rs. 10,000 in Hidden Gems during last 2 years not only allowed you to save Rs. 2.4 lakh but also appreciated your investment giving overall profit of Rs. 1.1 lakh, making your total Hidden Gems stocks portfolio of Rs. 3.5 lakh. However, if you invested the same amount in Small Cap Index, you would be sitting with an average loss of Rs. 1243.

In fact, actual returns of Hidden Gems are much higher as we suggested partial profit booking at higher levels in few of our best performing Hidden Gems and exit in few of non performing companies.

We are delighted to share that 9 Hidden Gems out of 24 during last 2 years have given more than 100% returns to our members. We are hopeful that we will continue to hunt best Hidden Gems from universe of small caps by doing authentic, in-depth and unbiased research work and support our members to make educated investment decision.

Subscribe to Hidden Gems and start investing systematically. Choose any of our combo packs to avail attractive discounts. To know more about Saral Gyan annual subscription services & charges, click here.

Do write to us in case of any queries, we will be delighted to assist you!

Wish you happy & safe investing!


Team - Saral Gyan.