Nivesh Mantra

24/10/2024

Will you stay invested or withdraw if the market falls 20%? Here’s some perspective 👇

India’s biggest bull market was between 2003 - 2007. In this period, the market generated a staggering 214% return on Nifty. Which is ~35% of CAGR on large caps for 5 years.

But did everyone make monies?
NO! Many sold their investments & could not stay invested because they got scared!

Here’s the data for the intra year market fall,

2003 markets fell 14%
2004 markets fell 27%
2005 markets fell 13%
2006 markets fell 29%
2007 markets fell 15%

Markets falling 15-20% intra year is a normal phenomenon. If you sold your investments in 2003 because the markets fell 14%, you would have not been able to make the 214%. Only investors who stay invested or add more during such falls with a longer term view are the ones who have made wealth.
Credit-Kirtan Shah

23/04/2024

30/06/2023

*Let’s take the story of India’s unluckiest investor*

She manages to invest Rs 1 lakh each year in the Sensex on the day the markets hit their 52-week high (highest point of the year) starting since 1992.

She does this year after year, somehow managing to be unlucky each year. But she does not sell, but continues to hold the index over time. As of yesterday, her total investment into the Indian stock market’s most famous broad-market index was Rs 30 lakh and the value of her investment was Rs 2.30 crore. That’s right. The worst possible outcome, if held tightly over time, has given an 11% average annual return.

This includes two years in which her money was reduced to half or less. In 1992, she invested at a high of Sensex value of 4,547, and closed the year at 2,615. 2008 was far more brutal, a high of 21,207 was reduced to a low of 7,697, and a closing annual value of 9,647. Her money survived this bloodbath and kept its head over inflation and taxes.

The markets, long-term, go up in a growing economy. If you keep sitting in the sidelines waiting for a ‘low’ you will keep missing the flight. Do you know who has made money in the latest stock market high? It is not the big foreign suit of an institutional investor. It is not the HNI who is too smart for his own good. But the retail investors who have approached the market with a systematic investment plant and have remained invested. They have trumped the big money.

14/04/2023

- All employees who want to choose the old regime *MUST* tell their employer by the end of this month before your employer deducts TDS on the first salary slip of the new financial year.

- By default the new regime will be considered if you don’t mention it & TDS will be deducted accordingly (higher) even if you have 80C like investments done.

- If you don't file your returns by the due data (31st July), you are defaulted in the new regime & your deductions are gone even if you are eligible

- You can also select the regime while filling for the returns but you will have to claim back the excess TDS + there are certain exemptions / deductions like HRA / LTA that you will not be able to claim.

- Sharing an infographic that can help you decide to select between new & old regime (This is also from an article earlier by Mint)

Live Mint carried this article brilliantly written by CA Nitesh Buddhadev

10/08/2021

Businesses are having swifter than expected recovery from the second wave of Covid 19

08/04/2021

Plan today to secure future earnings

03/04/2021

(a) 10,000 in 1981

(b) Value as on March 21,2021

*Inflation* - 1,65,910

LIC endowment plan - 80,230
Silver - 1,66,482
Gold - 2,73,023
FD - 3,05,781
PPF - 4,23,992
Sensex - 28,58,026