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A complete guide to help you ensure, you get the best returns on
your investments from equities.
This e-book will provide you important & relevant
information supported by facts & figures to help you grow your savings
by investing in stocks to succeed:
Key Mantra’s:
1. Adopt discipline approach for Savings
2. Find out the ways to get passive income
3. Set your financial goals & start
Investing
4. Do invest in equities for long term
Getting the most out of this book is simple, “How to Grow your
Savings?” requires practical approach. Execute your learning experience in your
day to day life by managing your finances effectively and achieve your long
term goals.
Traditionally, Indians are Savers. The savings rate is as high as
30 percent. If not a direct savings in the bank, the money goes into a fixed
deposit, gold or real estate. That trend might change soon if more people
invest in stocks, which have outperformed every other asset class from 2001 to
2007.
Stocks have outperformed other asset classes by as much as 60
percent, yet only 3 percent of Indian population directly invests in stocks.
The main reasons for this is a lack of knowledge, awareness as
well as unethical practices by a small minority of participants who encourage
regular churning based on tips and rumours without giving proper financial
planning to investors.
If someone invested in a Bank of India fixed
deposit account in 2001, he or she would have an 8 percent return per year. If
the same person invested in Bank of India stock he or she would have a total
return of 4,800 percent as the stock rose from 12 rupees to all time high of
588 rupees in 2010.
Though Indians continue to be underinvested in the stock market
there is more interest coming in from all corners. 200,000 new demat accounts
are opened every month. Recent transparency measures should also bring more
people in. The stock market will no longer be treated as a gamble but will be
put on par with real estate and gold.
The irony is that even though stock markets as a long term asset
class have given the highest returns, short term trading in futures and options
has also caused the maximum losses. The maximum numbers of bankruptcies were
caused due to the stock market crash in 2008-2009 amongst high risk speculative
traders.
Power of Investing in Equity Market
Now, Just Imagine...
How much can you make in 30 years by just investing Rs.10,000
initially in any of financial instruments?
Take a wild guess?
Let us look at the real example.
If you have subscribed for 100 shares of "X" company
with a face value of Rs. 100 in 1980.
• In 1981 company declared 1:1 bonus = you have 200 shares
• In 1985 company declared 1:1 bonus = you have 400 shares
• In 1986 company split the share to Rs. 10 = you have 4,000
shares
• In 1987 company declared 1:1 bonus = you have 8,000 shares
• In 1989 company declared 1:1 bonus = you have 16,000 shares
• In 1992 company declared 1:1 bonus = you have 32,000 shares
• In 1995 company declared 1:1 bonus = you have 64,000 shares
• In 1997 company declared 1:2 bonus = you have 1,92,000 shares
• In 1999 company split the share to Rs. 2 = you have 9,60,000
shares
• In 2004 company declared 1:2 bonus = you have 28,80,000 shares
• In 2005 company declared 1:1 bonus = you have 57,60,000 shares
• In 2010 company declared 3:2 bonus = you have 96,00,000 shares
In 2010, you have whopping 9.6 million shares of the company.
Any guess about the company?
(Hint: It’s an Indian IT Company)
Any guess about the present valuation of Rs. 10,000 invested in
1980?
The company which has made fortune of millions
is "WIPRO" with present valuation of 550+ crores (excluding dividend
payments) for Rs. 10,000 invested in 1980.
Unbelievable, isn’t it? But it’s a Fact! Investing in companies
with good fundamentals and proven track record can give far superior returns
compared to any other asset class (real estate, precious metals, bonds etc) in
a long run.
Will Wipro provide similar returns in next 30 years? Probably not,
it’s already an IT giant.
You need to explore companies in small and mid cap space with good
track record and stay invested to create wealth in a long term.
Let's take another example of little known company - Mayur Uniquoters.
Let's take another example of little known company - Mayur Uniquoters.
Mayur Uniquoters which we recommended 2.5 years back is a 7-Bagger stock for our Hidden Gems members. We recommended Buy on Mayur Uniquoter on 31 March 2012 at price
of Rs. 56 (adjusted price after 2 bonus issues and stock split in last 2.5 years, actual recommended price was Rs. 448) and today it’s
at Rs. 430 giving absolute returns of 670%. However, we missed to buy it
early. You might be surprised to know that Mayur Uniquoter is a 140-Bagger
stock for investors who invested in it 5 years back. Investment of Rs. 1 lakh
in Mayur Uniquoters in Jan 2009 is valued at Rs. 1 Crores and 40 lakhs today.
Mind boggling, isn't it? Company has posted strong
growth YoY and rewarded share holders in big way, Company was trading
at Rs. 3 (bonus issues and split adjusted price) with market cap of merely
13 crores in Jan 2009, today market cap of the company is 1,865
crores and company has paid total dividend of Rs. 9.25 during 2013
which is 3 times of its share price in 2009.
Mayur Uniquoters is still a great value
stock considering its consistent performance and leadership position in
artificial leather industry and robust demand for its products by esteemed
clients from auto and footwear industry.
It is a garden out there and one need to simply provide sufficient
time to grow his quality seeds to get the fruits. One has to know what he is
doing and has to be cognizant about it. With a little research and patience
stock market investments can yield maximum returns.
So, how will you grow your savings? What are you investing in?
Read complete e-book "How to Grow your Savings?",
its not only for beginners but also is a must read for
experienced investors. "How to Grow your Savings" will
definitely help you to get an edge over others by understanding the
basic of investments and importance of equities in a long run to generate
income and create wealth.
Below are the chapters
covered in "How to grow your Savings?"
PART I: VALUE OF MONEY
- Inflation
- Past
& Future Value of Money
PART II: INCOME, EXPENDITURES & SAVINGS
- Income
Expenditure Ratio
- Passive
Income
- Tips
& Tricks to Save Money
- Saving
Strategies
PART III: SAVING & INVESTING
- Difference
between Saving & Investing
- Understanding
Your Assets
- Investing
in Different Asset class
- Pay
Off Your Debt or Invest
- Power
of Compounding
- Benefits
of Long Term Investing
- 10
Key Investing Mantra’s
PART IV: FINANCIAL PLANNING
- Financial
Planning
- Managing
your Finances
- Making
your own Investment Plan
- Your
Investment Profile & Risk Tolerance
PART V: BUILDING AN EQUITY PORTFOLIO
- Investing
in Equities
- Investing
in Bull & Bear Market
- Invest
in Individual Stock or Mutual Fund
- Creating
a Stock Portfolio
- Investment
Portfolio Mistakes to Avoid
- Importance
of Stock Diversification
- Investing
for Growth, Yield & Income
- Facts
& Benefits of Investing in Small Companies
PART VI: EQUITIES & RISKS
- Investing
Risks Vs Rewards
- Understanding
Stock Market Risks
- Different
Type of Investing Risks
- Managing
Investment Risks
- The
Bulls, The Bears & The Farm
PART VII: EQUITIES & THE TIME FACTOR
- Stock
Investing & The Age Factor
- Don’t
Count on Stocks for Short Term Goals
- Characteristics
of Successful Investors
- Don’t
try to Time Bottom of Stock Market
- Investing
in Stocks for Regular Income & Long Term Growth
- Investing Checklist – 10 Most Important Element
Saral Gyan's 88 pages e-book is priced at Rs. 599 ($ 11.99) only. Click here to purchase it online.Wait! You can grab it for free, simply subscribe to Hidden Gems, Value Picks or Wealth-Builder subscription services. Moreover, you can avail attractive discounts on our combo packs, click here for details.
Subscribe today to claim our eBook - "How to Grow your Savings?" for free, we are sure that you will find it an interesting read.
In case of any queries, do not hesitate to write to us.
Regards,
Team - Saral Gyan
