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If You Are Driving A Ferrari Why Is Your Money In A Bullock Cart?

Niveza | 16 May, 2017  | Follow Author | Add to my Favourites 
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Do you believe in saving money? If your answer is yes, then you are the one I am addressing in this article. Whether you have started saving, or you plan to start soon are the issues of less or no relevance here. You are convinced about the power of saving is all that matters. Now that we know how important it is to save, the natural next step is to identify the safest, most growth-oriented investment instruments.

Hold on, are there any places which are safe and at the same time growth-oriented? Uhhh...let me think. Aren't savings account and fixed deposits safe? Yes, indeed. And at 4-6% annual return they also give decent growth. Wait a minute, is 4-6% your idea of good growth? Well, your saving and investment philosophy needs an immediate review. Your money, my good man, deserves better.

Equity Investment Via Mutual Funds (Equity)

Equity investment simply means stock market investment. There are some people who get clammy hands at the very mention of equity investment. These people, for some reasons, have made up their minds that stock investment is loss making proposition. People draw such interpretations due to lack of knowledge but let's not get into the debate of whether the stock investment is good or not and let's address the issue at hand. For those investors who seek handsome returns but are not comfortable with the idea of investing in stocks can look at mutual fund as a perfect middle ground.

Mutual funds are mainly of 3 types - equity, debt and hybrid. The idea of the mutual fund is to pool the investors' money and investment it in the stock market (in the case of equity funds). All mutual fund companies have a diversified portfolio which is managed by qualified fund managers. Though these companies do plenty of research before investing funds, in the stock market, it is literally impossible to eliminate the risk factor. So, equity mutual funds are remarkably growth oriented owing to the volatility of the market but they are little riskier than debt and hybrid mutual funds.

What About Returns?

You can rest assured that the returns in the mutual fund will be way better than the traditional instruments like the savings account and fixed deposits. Furthermore, investing in equity funds also gives you an edge, as it is one of the most rewarding mutual fund segment. However, the returns are largely dependent on the market conditions how you time your exit. Going by the historic data, good funds have given around 12-16% returns.

Direct Equity Investment = Uncapped Growth

If 12-16% return doesn't impress you then the only option you have is direct equity investment. In this medium, you don't take meditator (mutual fund) but deal with market directly. Equity investment offers uncapped growth and over the years has been a key tool of wealth creation for many. However, equity investment, unlike the mutual fund, is a little complex affair. Here investors have to have a thorough understanding of the stock market and its way of functioning. Also, it helps if investors know how to analyse stocks so to buy the best stocks and consequently get best returns.

I know, it's virtually impossible for the working professionals to keep a tab on all the happenings of the market and do all the analytical work on their own. So instead of opting for easy methods like looking up multibagger stocks tips and share market tips on the internet, you should get help from the experts.

If you don't mind paying a little for valued advice then stock advisory firms are your best bet.

Advantages Of Subscribing To A Stock Advisory Firm

  • Identify undervalued stock via intensive fundamental and technical research
  • Review your existing portfolio from the expert stock analysts
  • Get the best advice to meet your short-term and long-term financial goals
  • Get Timely entry and exit calls (Extremely important)

Dear investors, instead of shooting in dark and losing money in bad stocks, it's always a good idea to get experts on board and benefit from their expertise.


About Niveza
Niveza was founded by a group of entrepreneurs who believe that Wall Street and fund managers don't have monopoly on investment talent. They believe in democratizing the investment management industry and allowing individuals to keep total control over their money and away from fraudsters like Bernie Madoff. While they put forward 25 years of stock market experience at Niveza for investor benefits, they believe in spreading right knowledge about the stock markets and empowering retail investors with professional stock research.


For more information please contact [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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