Correction is Temporary, Growth is Permanent.

*Sensex up inspite of not very encouraging news in last couple of days* 😱

Maulesh : I am wondering Dr. AAA, why this market is going up n up in spite of RBI governor Urjit Patel resigned and BJP lost 3 states? 🤔 

Dr. AAA : You cannot predict SENSEX. Not even analysts. I always tell you, don't do market timing, time in the market is important for Wealth Creation. 😋

Maulesh : Ya, true but why did this happen? 😱

Dr. AAA : Tell me how many vehicles were there in your society before 10 years and today?

Maulesh : more than double. 😋

Maulesh : Have u upgraded your vehicle?

Maulesh : Yes.

Dr. AAA : How was your salary before 10 years and today?

Maulesh : more than Double 😀

Dr. AAA : Are u using same mobile which was used before 10 years?

Maulesh : No way.

Dr. AAA : Then how can you expect degrowth in SENSEX. It is made up of companies. And those companies are growing and so you. And so SENSEX is growing.

Maulesh : But????

Dr. AAA : Understand one thing.... UPA came and went, BJP came and will go, another government will come and will go, but your growth (meaning INDIANS) is permanent and India is made up of people like you. So India's growth is permanent and so Companies growth and so SENSEX's growth is permenant.

But yes..many corrections will come but they are temporary.

Maulesh : Oh..your quote..

*Correction is temporary and growth is permanent*

Invest in equity mutual funds for the long term to create *WEALTH.*

FINANCIAL FREEDOM

Invest in Stories, If you want to be Wealthy.

Everybody wants to be Rich or Wealthy, But How? But there is lot of difference between in The Rich and in The Wealthy.Being Rich and being Wealthy seems to be synonymous as both involves having a lot of money. However, there's a big difference between the two. ... The main difference between being Rich and being Wealthy is knowledge. Wealthy people know how to make money while rich people only have money.So today I am sharing with you some ideas that how to make money.

 Invest in Stories.  We should always invest in business stories,not just in shares etc by identifying just prices only, means you think that Stock price is Cheap, One should buy,and as Stock price go up, one should book profit.By applying only this price theory, you might be rich but cannot be wealthy.Here we are talking about, How to be Wealthy. Let us understand with some previous stories.

IT story:

Infosys made an initial public offer in February 1993 and its shares were listed on stock exchanges in India in June 1993. Trading opened at Rs. 145 per share, compared to the IPO price of Rs. 95 per share
.
If you had invested 8000rs in Infosys (@ Rs 95 per share), it will be worth Rs 4crore as on today.

Now you can see How to be Wealthy if you invest in Stories, not in Infosys Stock

Who has just  bought shares of Infosys, he would have been Rich for sure if he had booked profit at any point, but Who had invested in Story of IT industry, He has Become Wealthy.

Because in 1993 IT industry has just started its phase in India


CONSUMPTION STORY:   

PAGE INDUSTRIES  which came out with an initial public offer of 28.04 lakh equity shares in the price band of Rs. 360-395, has fixed the issue price at Rs. 360 per share of Rs. 10 in 2007.After 11 years now its price is appx 30000 per share. 10000 invested amount has become 800000 in just 11 years and story is going on. Because in India, there is great Consumption story. JOCKEY its flagship brand.

BRITANNIA,NESTLE,GILLETTE are all consumption stories Which has made investors Millionaire in just 10 to 15 years.

PHARMA STORY

India has already become the capital of Diabetes, and so many diseases also. So who had invested in pharma story during 2000 to 2003, they have also already become Millionaire.

Examples: Sun pharma"s founder Mr Dilip Sanghvi had started business from its Home and Many More like LUPIN, CIPLA, DR REDDY, AJANTA.

I have 100 of examples, i just want to say that invest in stories so nobody cannot  stop  you to become a Wealthy.

"EARN MONEY AND INVEST IN STORIES IF YOU WANT TO BE WEALTHY" OR JUST BE SATISFIED WITH YOUR SAVINGS .

IN SHORT INDIA IS A GREAT STORY,THAT IS WHY WHOLE WORLD IS INVESTING IN INDIA.


BEST REGARDS:
MOHIT JAGGA 
FINANCIAL ADVISOR.
9466787277

Stay invested in falling market, and never panic.

As I always insist that investors should always stay invested in falling markets,as it is the best time to participate in the Market, and should not have the feeling of Panic, why I am saying this right  now?, Because since January 2018 Correction is going on in Market, Prominently in Mid caps and Small caps, And Investors are loosing their faith in Market, as most of Mutual funds returns are negative because of correction. But everybody forgot that 2017 was a historical year in market, as Market has given very good returns, especially in  Mid caps and Small caps, 40% to 60% respectively.So after giving so much good returns, Correction is imminent,and investors should welcome the correction in-spite of doing panic in Market. Investors must have just trust in Indian Economy which is still fastest growing Economy in the World. As 40% kind of returns are not realistic returns, so Market always set off this kind of returns by doing Price or Time wise  correction just. As market average Return is 15% to 17% on CAGR basis. Investors must stick with their Goals, and stay invested in The Market because it is the only asset class which can beat inflation and give us good real rate of return with Tax efficiency.Investors should not time the market, because it is very difficult task, just invest for long term.As being a Financial Expert, You would ask me, what will happen in the Market in near term, My answer would be I DO NOT KNOW. But if you ask to me for Next 10 years, My answer is very bullish, that definitely Market would be very much upside from here due to expansion in size of Economy. Market do not give always northward kind of returns in every year.For Example

In March  2004 Sensex was @ 5591

In March   2008 Sensex was @ 15644

In March 2009 Sensex was @  9709

In one year, sharp correction had been seen due to Global recession and also due to sharp gain in last four years,

In March 2014 Sensex was @ 22386 

In March 2017 Sensex was @30000 

So in last 13 years Sensex has reached from 6000 to 30000, Five times it is , but in between, there were lot of corrections also seen, Only who has made money, who stayed invested in Falling markets
So have faith in Indian Economy and stay invested. India is Sixth largest Economy in the World as of now, and soon it is going to be on fifth no.So be participate in Indian Economy via investing.

Best Regards
Mohit jagga
Financial Adviser 

How to calculate actual SHARE PRICE?

As mine endevour  is always to write the blog is that, in a very easy language, one could understand the topic. Today i am discussing that How to calculate the Share price?, everybody heard that HDFC bank is @ 2000, TCS @ 1800 RELIANCE @ 1000. But we do not calculate their actual price , we just see the Share price.
Let us see with two prominent aspects:
:
To calculate with SPLIT SHARES

Suppose X company has issued fresh equity shares of 1 lakh @ 100 for 10 rupees face value on  01 July 2004

On July 2008 Company decided to split the face value from 10 to 5 rupees, and that time Share price is @ 150

Now what will be happened?

A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.

Now as a Layman enters in a Market, He only sees the Price @ 75 but do not see the Face value.

Actual price  of Share is 150 not 75, So while accessing the Price of Equity shares, You should have consider the face value utmost.

To calculate with BONUS SHARES

Suppose X company paid up equity shares of 1 lakh and Share Price is @ 100 on 1 JULY 2004

On July 2008 Company decided to issue bonus shares of 1:1 and that time Share price is @ 150 

Now what will be happened?

A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.


It is same process as we have been discussed in split shares, just you have to see that how many times company has issued bonus shares, split shares to calculate the actual share price.

If you have liked my blog so do share with others also.

What is buyback of shares?

Hello everyone, Today i want to tell you that what is buyback of shares in a very  simple language.As name suggests "BUYBACK" means when some Company wants to buy their shares back from their Shareholders is called BUYBACK.


Q:Why companies do this practice?

Ans:
A:To create trust in shareholders that Company has full conviction about their Business that is why They are buying back their Shares.

B: To increase Promoter Shareholding because they think that there is a lot of value in Company.

C. To stabilize the Market price of share in bad conditions

D. To utilize Company cash by buying their own shares

Q: At which price Companies offer BUYBACK?

ANS:  It is very important question, usually companies give BUYBACK offer to their Shareholders at Premium Price, Recent example, Yesterday on 15 06 2018, TCS has announced the BUYBACK offer at 15% premium from Market price

TCS current Market price @ 1830
 Buyback offer price @          2100


So as i mentioned earlier, why TCS is buying their shares @ 15% premium from Market, because:

It has conviction about its business.

It has surplus cash

They want to reward their Shareholders by giving this option to exit at premium.

They want to increase their Shareholding.

Q: What is the impact of BUYBACK on Company?

ANS: Usually Market takes it in Positive way, So it creates trust among in Shareholders, Bankers, Public and even Their Clients.


Q: Should retail investors tender their shares in BUYBACK offer?

ANS: It depends on perception of Shareholders that if they are long term investors or short term.Long term investors Must hold the shares, because it has a value that is why Company is buying back the shares, eg: In 2013 HUL  announced the buy back offer @ 600. at that time Market price was @ 490.
Those who are holding the Shares getting reward more than short term benefits, because now a days HUL share price is quoting @ 1600 


Hope by explaining  in a common language, you will get understand the same very easily.


                                                                                               With best Regards
                                                                                               Mohit jagga
                                                                                               Financial Adviser
                                                                                               9466787277
                                                                      

NEVER DEPEND ON SINGLE INCOME.

As our legend Investor Mr Warren Buffet  says that we should never depend on single income source, because in this world of  uncertainty, we don't know when our single source of income like job, business etc, stop giving income. So in our good time, when we are earning, we should start investing in good asset class from where we could get income in our bad time.

Mr Buffet says that he started investment in the age of 11, and he thinks that he got late. Because we should always start investment in our early age, as only Money is our best friend in our middle and old age, why should i mentioned  middle age, because now a days, risk of job lost in middle age persists more , and in that age, it is very difficult to get a new job, as no employer wants to give  a job to that age of person who is not so energetic and also new employer cannot  afford the previous salary structure, and not everybody is capable to do some  business, so only our investment which we have done in our early age can help us.

So to save money, we will have to control our expenses also.As Mr Buffet says

We should save minimum 30% of our income on regular basis, and it would be better if could be 40%.As our spend thrift habit makes us in problem when our income is reduced.

And we should have also some goals in our mind like Retirement, Dream Home, Children education etc and should stick with them till they are completed. Because without goals set up, there is a probability of breaking the investment.


So only investment can save us in case of job, business lost.So we should always start investment as early as possible.

DOS AND DON"TS IF YOU WANT TO BE SUCCESSFUL BUSINESSMAN OR INVESTOR

Today I would like to share some of my views that what should we do and do not if we want to be successful businessman or investor.

Q: What should we always Maintain?

Ans: Integrity, it always become us successful 

Example: Do you know what is the reason behind the dispute between Mr Ratan Tata and Mr Cyrus Mistri?

When Docomo and Tata associated, Tata promised Docomo that whenever they want to leave Tata, Docomo can take X amount immediately. As after some time Docomo wants to go back< they told Tata to find some good buyer, but Tata was unable to find the same. So Docomo decided to take back their money, but at that time Mr Cyrus was on seat and he told that there are some issues to give back their money, So Docomo had to go to court and filled a court case against Tata. This incidence gave a setback to Tata and Mr Ratan Tata only asked to Mr Mistry that had we promised to give their money back or not?But Mistry did not agree, then Ratan Tata dismissed him from all of his Companies and in a single day Docomo"s dispute was settled out of court. It is called integrity.

Q.What should we always Value?

Ans: Our company Brand value.

Example: Spice jet was founded by two partners, but after some time  one partner left the company and was running by single one, after some years, company was in very bad condition and in bankruptcy.Then Mr Ajay kumar who left the company told his partner that i would again run this company but you would  have to go out. He had again set good standards and  today all knows how Spicejet is growing.

Same as Mr Narayan Murti always says Infosys is my child.Both of them given great value to their Brands.

Q:What should not we do?

Ans: Bad intention

Example: Promoter of Kingfisher Airlines deliberately did all bad things like funds transfer to other subsidiaries and given loss to company. Due to this Kingfisher Airlines got finished as well as its good branded companies like United Spirits had to face bad time and their Management decided to get out to Mr Malya. And also many willful defaulter like Promoter of Skumar nationwide, Gitanjali jems.

I have written a short blog with practical example  so that you could read easily. 

Equity is a wealth creator not destroyer

I always hear from people that equity is a wealth destroyer,not creator at all,but in real sense Equity has been always a wealth creator in the past and beaten all asset classes like Real estate, Gold ,Silver Bank FD. Sensex has grown 360 times in last 39 years.As in 1979 Sensex was at only 100 and now it is quoting 35000-36000.No magic has been done in equities, it was just power of compounding growth in Sensex of appx 16%. This has been done due to Growth in Our Indian GDP, which has been growing@ 7% since last two decades.That is why India is the bright spot in all our the world. But to create wealth in Equities, we should have long term horizon.

 we are at now 2.5 trillion dollar economy and it is expected to double in next five years by many research reports.So if our GDP is going to be doubled,why Equities would have not been grown.As equities are always replica to Economic growth in long term.Equity has always followed the Nominal GDP- GDP@ 7%+ Inflation @ 6% = 13%.After creating Alpha Equities has given 16% on CAGR basis. In  a layman language, 1 lakh invested in 1979 has become more than 35000000 now. So actually it is wealth creator but it wants time to hold, it tests our patience in every bear cycle.

By following proper financial planning, discipline we can create our big wealth in equities. As to make real return, we have to invest in equities, there is no other option. And we should always think Equity as asset class, which i have already told in my video.You can also see in y video.So Equity was,is and will be wealth creator not destroyer.