Concept

S I P in direct Equity(share)

Presented By :
Mahesh lokhande
Date :08-07-2019

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 What is SIP in direct Equity(share)?

 SIP in direct Equity means -Invest continuously fortnightly,

monthly, quarterly basis as per your convenient. And earn
Different type of income.

 Example:-

 share price,
 dividend,
 Bonus share,
 Split share

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 Why Invest ?

 Aspirational goals – House , Foreign Holiday

 Share is your paper property
 High liquidity
 Start with small amount
 No of diversificatin option available
 Return high with low risk
 Minimize market volatility risk

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 TIME VALUE OF MONEY

Patience and discipline are required not to make the

wrong move at the wrong time – the results can be
dramatic – it is far more common to do the wrong thing
than to not do the right thing.

Considering inflation @ 5 %

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 Time Value of Money

 A fixed monthly expense of INR 30,000 p.m.

today over time ……

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 Time value of money

 While the value of your savings erodes over

time , thanks to inflation

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 The expense – savings mismatch

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 LET’S PLAN TO GET RICH
TOGETHER

INVESTORS NEED TO SAVE REGULARLY

INTO ASSETS THAT CAN BEAT
INFLATION TO MEET THEIR FINANCIAL
GOALS.

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 Performance of various asset
classes

 Cumulative annualized returns of different

asset classes .

9 Equity – C
 Case Study – Systematic Investing

Little Drops of Water Make the Mighty Ocean

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 Let’s take an example…..

 Anil is a businessman. He is married to Tina who is a

housewife. He has a son and daughter , both are in
school.
 Over next couple of years, he desires to follow a
savings plan to build wealth for his Goal.he start
invest in SIP in direct equity(share) with only
Rs.1000/-

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 If he invest below company
monthly(08/07/2019)
Name of 5year 3year 12 month
company Value(invested ) Value(invested) Value(invested)
Titan 1,55,028(60,000) 72,065(36,000) 15,668(12,000)
158% 100.18% 30%
Bajaj finance 275350 77790 15564
358% 116% 29%
Bata india 133711 72945 15558
122.85% 102% 29%
Reliance 120284 56567 12595
100% 57% 5%
Havells india 115730 52056 13400
93% 46% 7%
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 What is Rupee Cost Averaging ?

 The markets are volatile : they move up and down in an

unpredictable manner.
 Invest a fixed amount, at regular, predetermined
intervals and use the market fluctuations to your benefit.
 How does it help you :
1. You buy less when the market is up. You buy more
when the market is down
2. Overtime the market fluctuations are averaged
3. Most likely you will realize a saving on the cost per unit
4. This may lead to HIGHER RETURNS
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 Three common reasons for not
investing

 I don’t have enough money to invest

 I am too busy making money to worry about managing
it
 I don’t have the time or expertise to follow the market
movements and make investments at the right time.

SIP in direct equity(share)

is the only answer to all reasons.

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 Systematic Investment Plan

The Smart Law of Averages

 Invest regularly and periodically instead of Lumpsum / 1

time investment.

 For example , if you have Rs. 60000 to invest – you can

either do a one time investment or alternatively you can
spread the investment amount over a period of time say
Rs. 1000 every month for 12 months or Rs.10,000 every
month for 6 months.
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 How to make Sip work for you ?

 Set your financial goals

 Decide the SIP amount
 Look for a long term commitment
 Aim for the big picture
 Start investing.

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 Thank You

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