A Fiscally Tasty Way To have Your Cake and Eat It Too
How many times have you come across advertisements such as, “Want to sit at home and make money?” Plenty I’ll assume, as all of internet ads are curated to tickle this whimsical fancy.
Being skeptic about such proposals is being smart about it, or else you too would be relaxing (instead of taxing) with the Nigerian prince (infamous internet scam).
But what if you went one step ahead and entertained the notion of making monies while sitting at home? And No, I’m not talking about “Working from Home”, but about Investing. Yes, we at Fisdom, are here once again to give a financial shade to your weekend.
Working from home involves you working for money, whereas in Investing, your money works for you. An idea so bright and bold, is sure to find its suitors, even more-so in today’s times where opportunities are plenty. This is reflected in the record number of retail accounts opened over the COVID-infected summer.
In-line with your piqued interest, we are just as excited in telling you about the magic of investing. More importantly, Investing DONE RIGHT!
Your Opportunity Loss Is Someone Else’s Opportunity Gain
We are into Day 169 of COVID, as it crosses into 2020 from 2019 and prepares for 2021 with bleak hopes of vaccine siren coming from afar. With everything COVID emblazoned at back of everyone’s brain, the landlocked world of recent past, continue to struggle in all aspects of socio-economic life.
In wide-spread panic, Fear acclimatized itself with investors, global and domestic alike, with them dumping equities overnight, and rushing for rejuvenated belief in safe-haven asset of Gold. Riddled with all-time high volatilities, indices wiped out trillions in a matter of 2 months, witnessing their biggest drop (-~40%) in 10 years to in a matter of 4 months.
As march rolled around, the skeptics’ volumes amplified, rising high and quick, but dampened even quicker. The painting of the full story tells us why. Have a look!
As can be seen, if the 1st 4 months of 2020 were about falling, the next 4 were about getting back up! Basic math tells us that 50% recovered means there is yet 50% unseized market potential. Now comes the key question: Are you best positioned to capitalize on current untapped potential?
The table above highlights whose pockets have been leaden money in the past and will strongly continue to do so soon.
A key contributor to the rich getting richer is scrutinous financial prudence, a pattern seen in their approach to investing discipline.
As for the aspiring HNI (read as: individuals) wealth growth rates fair conservative vis-à-vis their peers, per Karvy’s wealth report 2019. Individual investors are making strides to jump into higher net-worth realms as they continue to collate higher deployments in financial assets vs physical assets. Financial and physical assets made up 61% and 39% respectively amongst individuals investors asset base, with the former delivering 11% returns in 2019 (3.4% over physical assets).
The puzzle looks half complete now, as we understand what separates the richer you from today you and what you can do to give shape to this new possibility. But will this be enough? Most definitely if DONE RIGHT!
Investing Is Best Done with A Pair Of Earmuffs
If Investing were a sport, indifference would be prime skill needed to play the game. The principle “Time in the Market beats Timing the market” is etched in every successful investor you will see today. As an example, legendary investor Mr. Buffett has accrued 90% of his USD 80 Bn+ net-worth after the age of 65!
The “Why and How” of investing has been talked about for as long as there has been investing. But since graphs paint 1000 words, here are few below to get you started on your investment journey this very minute! (3 clicks on Fisdom App, and voila! You are get set go)
Make sure you spell your investments as “SIP”, and not “SLIP”, for it can between your wealth tripling from X to 3X in a span of 10 years! (as seen between 20-30-year investment time)
Albert Einstein rightly said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”.
Investor Takeaway
As you change into your weekend outfits, remember to treat your investments like you treat your weekend self, i.e., left alone, unperturbed by news or noise!
Oh, and the next time someone says there’s markets favors the lucky, tell them no, it favors the brave! This graph shows why:
For as long as there have been markets, there has been volatility. In a similar fashion, every market trough has been followed by a peak. So, do not fall victim to volatility, which continues to be the biggest doorstop to investors’ wealth creation!
So far, we tackled the “How and Why” to stay fiscally savvy. Let us end the note on an actionable by addressing the “where”. The answer to that lies in 2 as simple as is smart investment solution of Mutual Funds
To find out more and stay to portray the “S” in SIP as “Smart”, Get on-board with Fisdom! We await to hear from you.
Happy Weekend!
