Let us take an example of equity stock "Britannia Industries Limited" and the below table, chart shows the real closing price of the stock for the last 15 years.
`On 8th September 2010, the stock is splitted from face value Rs. 10 to Rs. 2 per share, which means that if you owned 1 share, you will now own 5 shares.
If one purchased 10 stocks of Britannia on Jan 1, 2001 @798.75 for each stock, his invest value of Rs. 7,987.50 would be now Rs. 1,56,842.50 (3136.85*10*5), excluding dividends and bonus, which has grown around 20% compounded annually and absolutely tax free (as the holding is more than a year).
If the same person has invested as SIP (Rs 10,000 per month, i.e. Rs 1,20,000 per year ) for the last 15 years, with the same 20% as compounded annual return, his investment value of Rs. 18,00,000 would be now around Rs. 1,12,75,365. You would be really surprised now of ever thought investing like this.
Britannia Industries Ltd. was certainly outperformed the market!!!!
Systematic Investment Plan (SIP) requires a strict discipline from Investors to invest regularly and the profits yield will be fruitful and more importantly you are least worried about market fluctuations. If the market falls and your stock decreases then you can buy more stocks for the same amount and if market rises and your stock increases then you will get less number of stocks for the the same amount.
We are here to educate the investor and to provide good stock recommendations so that you can invest wisely.
Open your Demat / Trading Account now and start investing wisely.
Call +91-9912 908 306
Email: [email protected]
Disclaimer: The above example is taken to demonstrate how the long term investment can yield better results and there is no guarantee that all the equity stocks will yield you the same returns, as there are various factors which effect the price movement.
If the same person has invested as SIP (Rs 10,000 per month, i.e. Rs 1,20,000 per year ) for the last 15 years, with the same 20% as compounded annual return, his investment value of Rs. 18,00,000 would be now around Rs. 1,12,75,365. You would be really surprised now of ever thought investing like this.
Britannia Industries Ltd. was certainly outperformed the market!!!!
Systematic Investment Plan (SIP) requires a strict discipline from Investors to invest regularly and the profits yield will be fruitful and more importantly you are least worried about market fluctuations. If the market falls and your stock decreases then you can buy more stocks for the same amount and if market rises and your stock increases then you will get less number of stocks for the the same amount.
We are here to educate the investor and to provide good stock recommendations so that you can invest wisely.
Open your Demat / Trading Account now and start investing wisely.
Call +91-9912 908 306
Email: [email protected]
Disclaimer: The above example is taken to demonstrate how the long term investment can yield better results and there is no guarantee that all the equity stocks will yield you the same returns, as there are various factors which effect the price movement.