An Incredibly Simple Way To Maximise Your Returns From Equity Investments

By BankBazaar | September 3, 2017

Equity investing is more of an art, say experts. However, a seasoned investor will tell you it is simply a matter of routine, practice, and patience. It’s that simple. All it takes to make it work is putting it into practice on a consistent basis.

Whether you are directly investing in stocks or through Mutual Funds, these three qualities can take you far. Unfortunately, many investors are fairly clueless when it comes to handling their equity investments.

Additional Reading: Choosing Between Various Categories Of Equity Mutual Funds

If you aren’t convinced about how far these particular qualities can take you, here’s some proof in numbers. Let’s say you invested in Tata Consultancy Services (TCS) in January 2012. The share price was about Rs. 1,178 per share back then and you decided to invest for the long term.

However, the markets started falling in 2013, with the Sensex dropping below the 20,000 mark. Let’s assume you sold all your shares in a state of panic. Your absolute return would have been 20%. But, what if you held on to them?

Halfway through 2016, TCS was quoted at approximately Rs. 2,317 per share – which is an absolute return of 96%, not including all the dividends you would have received from the firm. The yearly return would have been close to 15% per year, much higher than that of any other investment at the time.

The same is true for Mutual Funds. Any investor worth his salt, who is looking to create wealth, should hold on for the long term. Only speculators sell in the short-term.

Additional Reading: How To Get Your Investment Strategy Spot On

Who are investors and who are speculators?

Investors are those who invest for the long term in order to create wealth to meet their financial goals at various stages in their life, while speculators are those who have short-term investment goals with clear profit in mind and invest based on short term trends/indicators.

Are you an investor or a speculator? Ask yourself.

If you are a speculator, we wish you all the luck in the world, because your profits are never certain.

If you are an investor, then stay in the market and wait for it to do well in the long term. You should get great returns over time that also beats inflation.

Additional Reading: Do’s And Don’ts Of Mutual Fund Investing In A Bull Market

Since India has a GDP of 6+ percent with a thriving services sector as well as a robust savings rate of 34+ percent, it is better to be patient today if you want to gain big tomorrow.

If you’re looking to invest your hard-earned money in Mutual Funds, you’ve come to the right place. We have a wide range of investment options for you to explore here at BankBazaar. Don’t hesitate any longer! Invest now and reap the rewards!

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Category: Equity investing Investments

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