JavaTechies / Personal Finance

Equities over medium to long term is a wealth creating asset. However, it is the nature of the equities to move up and down over the short-term. Trying to time the market over the short-term is extremely challenging. One solution is to maintain a long-term horizon and ignore the short-term fluctuations. On the other hand, SIP (Systematic Investment Plan) helps take advantage of ups & downs in market and mitigate risk arising from market volatility, provided the SIP is continued over long periods of time. There are abundant stories highlighting the importance of long term investing and the importance of averaging through SIP investing. But, nothing can tell it better than the numbers do. Consider this, SIP of Rs 3000 per month in HDFC Top 200 Fund since inception (Oct 11, 1996) has created wealth to the tune of Rs ~82 lakhs as on Dec 30, 2016, despite the fact that the journey was bestrew with many global/local events like tech bubble, Asian crisis, Pokhran blast, Lehman crisis...

Dear Readers, I know you visited my blog many times since one & half month to get to know any an interesting article wrote for you :) Yes, I got an idea for my next article a month ago but i was not getting time due to *** work & *** work :) hope you guys understood what i mean. any way ..you must read the title of this article that's " Investment in Equity = Investment in Ideas " Of course, you cant agreed/clear with this title in first time but I have recently completed all most 7 years in Equity Market and I experienced it. Let me give you in simple plain example you can able to understand & get it. " I have a my company and have my team that work for my company, now each day my team(employee) work on some thing that match my daily goal and eventually, it'd complete my company goal.  So, To do this, Of course it's not rocket science i means i have to give an  enough time to my team to produce sufficient & productive an output/...