Kotak Cherry’s Post

How much return should you aim for, for your equity investments? Before that, let’s understand what returns you should NOT aim for. If someone tells you you can double your money in 30 days by investing in the stock market, the only thing you should do is run (with your money)! 😅 Why? Because stock markets aren’t casinos. Anyone who promises you unrealistic, too good to be true returns, is plotting to dupe you of your cash - something that is too prevalent in our country right now.   Hence, there is still a need for basic investor education in India. When it comes to investments, the asset class that can consistently deliver you inflation-beating returns over the long term, is Equities. So, how much return? If you plan it intelligently with a goal in mind, and carefully select your stocks/MFs, equity can deliver about 25% compounded annual returns (CAGR). That’s approximately doubling your invested wealth, every 3 years! And if the market is extra kind and you are extra patient to stick around, this figure could even surpass 30%. In the last 365 calendar days, NIFTY has yielded 30.92% return. At this point in time, if you’ve started or are looking to start investing in Indian equities, 5 years from now you’d be probably telling others that you were at the perfect place, at the perfect time! So what are you waiting for? Get going with doubling your wealth every 3 years and not 30 days. If you want some help with picking your stocks, drop me a line and I’ll share some ideas/sectors which one should definitely look into right now. Just remember whatever you choose and whatever gives you returns that are average or above, sticking to them for the long haul is key. #equities #investmentideas Disclaimer: Ideas that I’d share will be solely meant for your information and education. I’m not a SEBI-registered analyst so there won’t be any sort of recommendations. You must do your own homework, before taking any positions. Follow for more educational content on stock markets and investments.

Turn ₹1 Lakh into ₹65 Lakh! Imagine investing ₹1 lakh and watching it grow to a whopping ₹6.5 million over 30 years! That's the magic of compound interest, a force often investors underestimate. Here's why: 👉 Exponential vs. Linear: Our brains are wired for linear thinking. We expect returns to increase in a straight line. However, investments grow exponentially, meaning your returns snowball over time. 👉 The Compounding Effect: Each year's return is added to the principal amount, generating even greater returns in subsequent years. This snowball effect is what propels your wealth to impressive heights. 👉 Long-Term Focus: Patience is key. Don't get discouraged by short-term market fluctuations. Stay invested for the long haul to leverage the power of compounding truly. 👉 Stay Invested: Frequent buying and selling can disrupt the compounding process. Resist the urge to time the market and focus on staying invested to maximize your returns. 📈 The Indian stock market has historically delivered average annual returns of around 12-15%. Let's say you invested ₹1 lakh in a diversified equity mutual fund offering a 15% annual return (hypothetical; past performance does not indicate future results). Over 30 years, with compounding, your initial investment could balloon to over ₹6.5 million! 📈 While historical returns are a good reference point, future performance can be impacted by various factors like global economic conditions, interest rates, and inflation. However, a well-diversified long-term portfolio can help weather these challenges and benefit from compounding growth. Investing can be a powerful tool for wealth creation. Understanding the power of compound interest and adopting a long-term perspective can unlock its potential and achieve your financial goals. Note: This is not financial advice. The 15% annual return assumption is for illustrative purposes only. It's essential to remember that past performance is not indicative of future results. #CompoundInterest #LongTermInvesting #WealthCreationStrategies #InvestingInIndia #IndianStockMarket #FinancialLiteracyIndia #SmartInvestmentStrategies #IndianMarketInvesting #FinancialAnalysisIndia Equivaluesearch

A recent study by the National Stock Exchange (NSE) revealed that the majority of investors in the Indian stock market are below 30 years of age. This reflects the growing dominance of youth in financial planning, highlighting increased financial literacy among the younger population. But how will this impact the market in the long run? This surge in young investors will expand the capital base and boost market liquidity, ultimately strengthening the country's investment landscape. Furthermore, it will make Foreign Portfolio Investment (FPI) more attractive, contributing to long-term market growth and transformation. With NIFTY and SENSEX reaching new highs almost every 10 to 15 days, we are witnessing a significant shift. However, we must remain cautious, as rapid growth could also create a market bubble. That said, looking 10 years down the line, the trend is clear—India is on a rapid growth trajectory, and the role of young investors will be pivotal in shaping the nation's financial future. #StockMarket #YouthInvestors #IndianEconomy #InvestmentTrends #FinancialGrowth

The importance of stock market investing is and has been reiterated by various experts continuously. Despite that, the dissemination of stock market investing has been very low in India. Without emphasizing on a single reason, it is evident that there are multiple hindrances, which prevent a common Indian from investing in stock markets. An average Indian household holds only 5% of its assets in financial instruments. In contrast to that, 77% of the assets are in real estate, 7% in durable goods, and 11% in gold (The Print, 2023). One of the biggest hindrances is the fact that most common people perceive stock markets to be a place for gambling. Being an informed investor, I would like to argue against this fact. Investing in stocks is similar to investing in other financial assets and it tends to be a gamble when one wants to make easy money. With due diligence, one can easily invest in good companies and compound their wealth at a better rate than FDs. However, with the rise in the usage of social media and love for easy money, options and futures trading (financial derivatives) is usually the place where novices get attracted to very often. I myself am illiterate about the working mechanism of financial derivatives. At the risk of limited knowledge, I can make out that financial derivatives are instruments, which allow traders to speculate the price of an underlying asset without owning it.   The ‘speculative’ factor is the biggest red flag. According to the SEBI Chairperson, 90% of option and future traders lose money. Bloomberg reported that in the year 2022, traders lost an equivalent of 5.4 billion US dollars in these trades. Notwithstanding these downsides, it is a pity to see many brokers promoting options and future trading. They have gone far enough to develop tutorials on these for beginners. It is high time that Indian investors understand the importance of patience and steady compounding. It is more important to survive and grow steadily than to earn crores in one day and lose everything the next day. In hard times, I always remind myself that good and informed investing is boring and time taking. #investing #derivatives #trading

Decades ago, the stock market in India was often misunderstood and labeled a "satta bazar" (gambling market), with the perception that it was a place for speculation rather than meaningful investments. Unfortunately, even today, despite an abundance of information, many people treat the stock market as a quick money-making platform. This mindset has led to 93% of traders losing money, as short-term trading and speculation rarely yield sustainable profits. The stock market is fundamentally a marketplace of businesses, where purchasing shares makes you an equity shareholder. Owning shares means investing in the growth and success of these businesses, which, like all enterprises, require time to grow. True wealth in equity investing is created by staying invested over the long term and aligning investments with personal financial goals. For individuals who may not have the expertise or time to analyze individual companies, mutual funds are an excellent investment vehicle. Professionally managed by fund managers, mutual funds pool resources to invest across a diversified portfolio of equities and other asset classes, like, gold, silver, bonds, real estate, etc, reducing risk while targeting sustainable returns. They also provide flexibility through options like equity, balanced, or multi-asset funds, catering to varied financial goals such as retirement, education, or wealth creation. A financial advisor can help you design a personalized financial plan by identifying your goals and recommending the best investment strategies to achieve them efficiently and effectively. #EquityInvesting #LongTermWealth #MutualFunds #FinancialFreedom #SmartInvesting #StockMarketBasics #WealthCreation #SIPInvesting #DiversifiedPortfolio #InvestSmart #RetirementPlanning Equity investing through mutual funds not only simplifies the process but also instills discipline through systematic investment plans (SIPs), ensuring regular contributions to your goals. By focusing on long-term growth and leveraging professional management, investors can harness the true potential of the market and achieve financial freedom.

𝐌𝐮𝐭𝐮𝐚𝐥 𝐅𝐮𝐧𝐝𝐬 𝐯𝐬. 𝐃𝐢𝐫𝐞𝐜𝐭 𝐒𝐭𝐨𝐜𝐤 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭: 𝐖𝐡𝐚𝐭 𝐬𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐜𝐡𝐨𝐨𝐬𝐞? With so many youtube channels and videos giving training on how to invest in stock market and how to choose the best stock to invest in, there has been a lot of buzz about investing in Stock Market, so should you start investing? 𝐁𝐞𝐟𝐨𝐫𝐞 𝐲𝐨𝐮 𝐝𝐨, 𝐡𝐞𝐫𝐞 𝐢𝐬 𝐚 𝐪𝐮𝐢𝐜𝐤 𝐜𝐨𝐦𝐩𝐚𝐫𝐢𝐬𝐨𝐧 𝐭𝐨 𝐡𝐞𝐥𝐩 𝐲𝐨𝐮 𝐝𝐞𝐜𝐢𝐝𝐞 𝐌𝐮𝐭𝐮𝐚𝐥 𝐅𝐮𝐧𝐝𝐬: These professionally managed investment vehicles pool money from various investors and invest it in a basket of stocks, bonds, or other securities. Mutual funds offer diversification, which inherently reduces risk, and are suitable for investors with varying risk appetites and investment horizons. 𝐃𝐢𝐫𝐞𝐜𝐭 𝐒𝐭𝐨𝐜𝐤 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭: This involves buying shares of individual companies directly on the stock exchange. It offers the potential for higher returns but carries significant risk, particularly for investors who lack in-depth knowledge of specific companies and market dynamics. The comparison analysis is detailed in the excel sheet below. (*Conditions applied) 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥𝐲, 𝐚𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠 𝐭𝐨 𝐭𝐡𝐞 𝐀𝐌𝐅𝐈 (Association of Mutual Funds in India), the total number of mutual fund investor accounts in India surpassed 9.6 crore (96 million) in December 2023. This highlights the growing preference for professionally managed investment options. 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐦𝐲 𝐭𝐰𝐨 𝐜𝐞𝐧𝐭𝐬 𝐚𝐬 𝐚 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐚𝐝𝐯𝐢𝐬𝐨𝐫 - While direct stock investment can be lucrative, it necessitates a significant time commitment and a strong understanding of the market. For most investors, particularly those with a moderate risk appetite and limited investment knowledge, mutual funds is a better choice. They offer diversification, professional management, and convenience, making them suitable for a wider range of investors, especially those seeking to build wealth for the long term.  It's crucial to carefully assess your risk tolerance, investment goals, and investment horizon before making a decision. #mutualfunds #investing #investmentoptions #investingstrategy #stockmarket #financialliteracy

A recent study by the National Stock Exchange (NSE) revealed that the majority of investors in the Indian stock market are below 30 years of age. This reflects the growing dominance of youth in financial planning, highlighting increased financial literacy among the younger population. But how will this impact the market in the long run? This surge in young investors will expand the capital base and boost market liquidity, ultimately strengthening the country's investment landscape. Furthermore, it will make Foreign Portfolio Investment (FPI) more attractive, contributing to long-term market growth and transformation. With NIFTY and SENSEX reaching new highs almost every 10 to 15 days, we are witnessing a significant shift. However, we must remain cautious, as rapid growth could also create a market bubble. That said, looking 10 years down the line, the trend is clear—India is on a rapid growth trajectory, and the role of young investors will be pivotal in shaping the nation's financial future. #StockMarket #stocks #InvestmentTrends #Fincance

🌐 Market Volatility and Long-Term Wealth Creation 📉📈 With the U.S. elections around the corner, global markets, including India, may experience some fluctuations. It’s natural to feel uncertain, but remember: market dips are opportunities for long-term wealth creation. Let me share an example of two friends, Rahul and Anjali, both of whom started an SIP in a small-cap fund back in February 2020: 📌 Rahul’s SIP-only Strategy Rahul invested ₹10,000 every month through SIP. By September 2024, his total investment of ₹5,50,000 had grown to ₹12,65,089. 📌 Anjali’s SIP + Additional Investment Strategy Like Rahul, Anjali invested ₹10,000 every month through SIP. However, when the market dipped in March 2020, she took advantage of the lower prices and invested an additional ₹2,50,000 over time. By September 2024, her total investment of ₹8,00,000 had grown to ₹20,65,405. The key difference? Anjali’s ability to invest more during market downturns resulted in an extra profit of ₹8,00,316, thanks to a lower average NAV (from ₹1806.18 to ₹1609.18). The takeaway: When markets are down, they offer opportunities to buy more units at lower prices. Over time, this strategy can significantly boost wealth creation. If you see market drops in the coming weeks, don’t panic. Stick to your goals and, if possible, invest more to capitalize on the lower NAVs. #InvestSmart #WealthCreation #SIP #FinancialFreedom #LongTermGrowth #Investing #mutualfund #Growth

How Beginners Can Start Investing in Stocks in India? ❇️ Investing in stocks can be a great way to grow your earnings. Here’s a quick guide for beginners:❇️ 💠 Start with a Plan: Define your financial goals and investment horizon. Decide if you’re investing for the short-term or long-term. 💠 Open a Demat and Trading Account: Choose a reliable broker like Zerodha or Upstox to get started. This is essential for buying and selling stocks. 💠 Research and Choose Stocks Wisely: Focus on blue-chip to moderate risk companies like Reliance Industries or HDFC Bank. These are financially strong and less volatile, making them safer for beginners. 💠 Diversify Your Portfolio: Don’t put all your money in one stock. Spread your investments across different sectors to reduce risk. 💠 Use SIPs and Mutual Funds: If you’re unsure about picking individual stocks, start with SIPs in mutual funds like the SBI Bluechip Fund for a steady investment. 💠 Keep Learning and Stay Updated: Follow financial news and trends. Continuous learning is key to successful investing. 📗 Historical Data Insight: Nifty 50 Growth 💠 Over the past decade, the Nifty 50 index has grown from around 5,000 points in 2013 to over 18,000 points in 2023, reflecting the overall positive trend of the Indian economy. 💠 Such historical data can guide investors in setting realistic expectations. 🔄 Market Crashes and Recovery 💠 The 2008 financial crisis and the 2020 COVID-19 crash were significant downturns. 💠 However, the market has always bounced back stronger, demonstrating the resilience of long-term investments. 📌 Remember: Start small, stay consistent, and think long-term📌 ! #Stockmarket #Investing #Finance #Indianstockmarket #NSE #BSE #Passiveincome #Wealthgeneration #Growth #Strategy #wisdom #beginners #Economy #India #SEBI #Dailystocksdekho

**The stock market** is a dynamic platform where investors buy and sell shares of publicly listed companies. It serves as a crucial mechanism for capital formation, allowing companies to raise funds for growth and expansion. Investors participate in the stock market with the goal of capital appreciation and, in some cases, receiving dividends. Understanding market trends, conducting research, and diversifying one's portfolio are essential for successful stock market participation. Whether you're a long-term investor or a day trader, the stock market offers a wealth of opportunities and challenges. 📈🌟 The Indian stock market is a burgeoning economic powerhouse, offering a plethora of opportunities for investors, traders, and financial professionals. As one of the world's oldest and most vibrant markets, it comprises major exchanges like the **Bombay Stock Exchange (BSE)** and the **National Stock Exchange (NSE)**⁴. These platforms facilitate a wide array of transactions in equities, commodities, derivatives, and currencies, reflecting the diverse nature of India's economic landscape. With India ranking as the fourth largest market globally as of 2024³, the scope for career growth, investment, and entrepreneurship within this sector is substantial. The market's expansion is driven by a robust regulatory framework, a growing investor base, and increasing global interest in Indian equities. For those looking to forge a career, the stock market offers roles such as market research analysts, traders, and financial advisors, with the potential for significant earnings¹². Moreover, the market's performance is closely tied to the country's economic indicators, making it a barometer for India's financial health and a critical component of its growth trajectory. 📊🚀