Dog,Elephant and investments.
An elephant and a dog became pregnant at same time. Three months down the line the dog gave birth to six puppies. Six months later the dog as pregnant again, and nine months on it gave birth to another dozen puppies. The pattern continued. …..
On the eighteenth month the dog approached the elephant questioning, “Are you sure that you are pregnant? We became pregnant on the same date, I have given birth three times to a dozen puppies and they are now grown to become big dogs, yet you are still pregnant. What’s going on?”. The elephant replied, “There is something I want you to understand. What I am carrying is not a puppy but an elephant. I only give birth to one in two years. When my baby hits the ground, the earth feels it. When my baby crosses the road, human beings stop and watch in admiration, what I carry draws attention. So what I’m carrying is mighty and great.”
Perception that matter.
Often investor’s say equity market is volatile and difficult to understand. In Dog’s perception Elephant is not delivering .But the fact is otherwise. It is the perception that matters in life. For instance if you had bought Wipro shares for Rs 1000 in 1980 and held on to it for next 36 years your current investment value is Rs 5.3 crore!.Yes it is Rs 5.3 crore.The plain vanilla Sensex have delivered more than 17 per cent in the last 37 years. If dividend yield also taken into account your return will be 18.7 per cent. No other asset class in India has delivered such a great return. To understand better for the same period fixed deposits have delivered 8.36 per cent.
I am not suggesting invest all the money equity or equity linked mutual fund. Have a purpose such as children education,marriage,buying house and retirement. Start investing based on your risk taking capacity, monitor your portfolio at least every quarter, whenever you find that your portfolio has given abnormal return book profit and consolidate the savings to meet your aspiration.
Do you know, if you just invest Rs 3000 and if it earns 15 per cent return, after 30 years it will be Rs 2.07 crore.
Without having sleepless night you can reach the target. If you need any data or consultation feel free to reach 9940478287 or write to Suresh@myassetsconsolidation.com.The above data points are only for educational purpose.