The power of compounding what it means Aashish a young professional and his father an avid trader with Angel Broking are talking when are she asked what the power of compounding is all about his father explains through the power of compounding a small amount of money can grow into a substantial sum over a period of time the longer the timeframe the greater the value for example in order to achieve your future financial goal you invest 1 lakh rupees per annum in a bank fixed deposit for 30 years at five point five percent interest that is post tax effective rate your savings will grow to seventy six point four lakh rupees which is two and a half times the amount you invest in equities however have historically outperformed other asset classes yielding approximate returns of 16 percent over a longer period of time if you invest the same amount for the same period in equities instead of a bank fixed deposit and assuming you get 14 percent interest your savings will grow to four point one crore rupees which is more than thirteen and a half times the amount you invested this is the power of compounding thanks to his father Ashish now understands the power of compounding.
What is s IP and what are its advantages meet a ship with his salary hike Ashe was determined to start saving Ravi Ashish is colleague and an active trader with Angel Broking suggested SIV Ravi explained s IP or systematic investment plan is a disciplined method of investing in mutual funds you can build a portfolio by investing a fixed amount of money say 1,000 rupees at regular intervals monthly quarterly or annually as convenient s IP offers many benefits it is wallet friendly and inculcates discipline and ideal for new investors its hassle free once initiated the amount is deducted automatically through ECS you buy neutral fund units at various prices so you don’t have to worry about timing the market or market fluctuations this helps you get better results in lump sum investments you have to save for a period and then invest the amount with s IP Ashish starts getting returns from day one experiencing the power of compounding at its best to leverage these benefits Ashish is now ready to start investing in s IP with Angel Broking.
What is ELSS and what are its advantages Vinod is a young professional with almost zero investments but his recent paycheck showed a huge TDS deduction so he was compelled to think about investing his elder brother hushed a seasoned investor with Angel Broking recommended ELSS harsh explained ELSS for equity-linked savings scheme is a diversified equity mutual fund which offers tax benefits under Section 8 TC compared to other tax saving investment alternatives ELSS has the shortest lock-in period of 3 years where investors get tax-free returns and also benefit from capital appreciation by investing in ELSS you will be eligible for tax exemption up to 1.5 lakh rupees every year what’s more you can grow your money through ELSS by taking advantage of equity investing which has delivered the best returns compared to other asset classes over a longer period of time knowing all these advantages Vinod is now ready to save tax by investing in ELSS through Angel Broking.
Yogesh is new to investing and wants to know more about Mutual Funds.
Mutual funds are like a basket of investments.
It can consist of shares, bonds, derivatives and other financial instruments.
There is a fund manager who manages the portfolio. He uses his professional expertise to spread out the money in several financial instruments from different sectors so that, losses from an investment can be balanced out by gains from others. This way, the fund stands a better chance to generate maximum profit.
When investors like Yogesh, buy a mutual fund, they are actually investing into the pool of money, which is then invested into the financial instruments by the fund manager.
So, if Yogesh invests in a mutual fund, he will own a unit of the mutual fund and not shares of companies.
Mutual funds are suitable for investors who want to profit from the stock-market without having to manage shares directly. You can invest in Mutual Funds at Angel Broking.
Mohan has investments in real estate, gold & fixed deposits. However, experts often advise him to invest in equity. Let’s see why:
Equity requires low investment:
Unlike Fixed Deposit, Gold & Real estate, you can enter the equity market with a much smaller capital.
Equity offers higher returns:
It is historically proven that Equity offers better returns in comparison to FD, Gold & Real-estate.
Returns on Equity beat inflation & are completely tax-free.
Equity offers high liquidity
Equity can be bought & sold very easily & converted to cash pretty fast.
Equity is the best performing asset class
Equity increases your wealth faster over a long time due to compounding effect, capital appreciation & dividend income.
For example if in 1993, Mohan would have invested Rs.10,000/- in FD & Infosys Shares, today, they would be worth Rs.66,500/- & Rs.1.25Cr respectively.
Make your own online share market investment plan & Benefit from these advantages by investing in equity with Angel Broking.
Venkat wishes to invest in shares, but is not aware of all its benefits.
So, his friend Ashish – an active trader with Angel Broking explained the 3 quick benefits of equity share investment.
Returns & Dividends:
If the company, Venkat has invested in, earns a profit, their stock prices rise, increasing the value of his investment & giving him returns. In addition, the company might also share its profits in the form of dividends.
Stocks are traded in exchanges & can be quickly turned into cash.
Venkat can spread his investment over different companies & industries reducing any risk of loss.
To leverage theses benefits, Venkat is now ready to invest in equity shares with Angel Broking as his trusted partner, and Open a Demat + Trading account with Angelbroking.com.
What is value investing some it wants to know what value investing is his friend Ashish an arbitrator with Angel Broking explains let’s compare two similar manufacturing companies ABC filters and proof filled enterprises whose current net worth is 500 crore rupees each however a DC filters market capitalization or market value is 250 crore rupees this means that the market has given ABC filters a lower valuation that is only half its net worth Pro field enterprises market capitalization is 500 crore rupees this means the market has given profil enterprises evaluation at par with its current net worth so ABC filters is trading at half the valuation of pro field enterprises and at a discount to its actual value assuming that the prospects of both the companies are the same investing in ABC filters will give a better return on investments a few years down the line this would be a case of value investing Warren Buffett used this concept to generate enormous wealth Samir now understands the benefits of value investing and is now ready to trade with Angel Broking.