An important fact with regards to the markets should be understood – They are an amazing way to grow & make wealth not a medium to make instant money!!
Many might not agree with my assessment but this is a fact.
The companies listed on the market are not mere price tags but are entities that have
- Human Capital
- Product Innovation
- Market Penetration
- Export-Import Facet
- Capex Cycles
Owing to this, investing in any stock(post research) is like being a partner in the companies journey towards growth and getting rewarded through
- Dividends
- Stock Bonus/Split, Rights Issue, Buyback
- Having voting rights to decide the course of the company
I Hope, I have been able to make my case for investing.
How to invest Rs 1,000(~ US $13) and then grow it in the BSE/NSE?
Query of a risk averse investor
The amount though small if invested regularly with discipline to buy blue-chip stocks through the SIP(Systematic Investment Plan)
Nibbling at stocks in the form of 5–10 on a fortnightly, monthly, or quarterly basis can bring returns on a 10–20 year horizon
Example:
The stock of ITC has risen more than 1400% in the last twenty years. The chart shows what would have been the value if anyone had invested in 2000 (this excludes dividends and stock bonus(if any))
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