Kya SIP sahi hai?… because SIP also mostly goes into Stock Market… to buy shares of companies.

Lay people always protect their money a lot… but… when it comes to investment… do they hand over that money to somebody else… very easily?

This is the BIGGEST DIFFERENCE between Mutual funds and Shares (Equities).

Today there are so many Apps, AI and Google to defrentiate between good companies and bad companies… to see which companies have increasing Revenues and Profit… and which companies have flat or decreasing Revenue and Profit…. which companies have high ROCE and EPS… which companies have them low… which companies give Bonus and Stock Splits… which do not give.

They have option to invest in good High Div PSU stocks.

Usually there are 10 Parameters which show that if a company is worth investment. These can be searched on multiple APPs and AI… (pls note that all of these can have errors… so double and tripple checking on different APPs is very imp).

But they would rather like to know how many centuries Virat Kholi hit ot the number of hit movies a film star did.

Do LAY people always trust other people with their money? Is it why they get waylaid?

The whole concept of buying Shares in a Company is to buy a part of that business… you get a small percentage as Dividend… as the business grows… the company grows… sometime giving birth to other smaller sister companies… sometimes listing them on the Stock Market … sometimes holding them as PVT Ltd companies…. but all of them add to the company’s Revenue and Profit.

Many people believe that the stock market are not REAL market and stock prices are imaginary and move randomly and fluctuate… true 100%… but what isnalso true that Dividends are AS REAL AS RENT is in Real Estate.

This is because dividends are directly releated to the REAL performance of companies in the market… whether the stock prices increases or decreases.

In Stock Market there are Bad companies… Good Companies… and GREAT Companies.

Great companies are like Sector Leaders or Monopoly companies or almost monopoly companies… Some of them are Govt PSU Companies… some of them do stuff that others dont do.

You pick great companies … that will last you a lifetime… you live off dividends… then UPs and DOWNs in Stock Market dont bother you much.

A safe way to invest in Stock Market is to invest EXACTLY like one does in REAL ESTATE… dont buy and sell often… sit on it and hatch eggs… till you get Bonus Shares and Stock Splits:

1. Estimate TARGET INVESTMENT PRICE (eg Price of Your Dream House eg 1Cr).
2. Pay a DOWNPAYMENT … in this case just 5%
3. Invest this across best div paying companies of India… across all sectors (now you are getting Rent). You have opened another source of Income.
4. Do this for Next 3 yr… by now you have 15L invested and getting an ok amt as dividend.
5. From 4th yr onwards you can invest just 1L per year plus the Div Amount.

In 20 yrs you will have created enough dividend.

So as COMPANY grows… they either issue bonus shares or Split the stocks… this is PARAMOUNT in WEALTH CREATION.

If you want to be extra safe… You can put 50% in a Mutual SIP and 50% direct investment in Stocks.

Sectors getting Tail wind (support/ease):

Defense and aerospace manufacturing companies are the primary listed entities in India that benefit from a prolonged conflict in the Middle East.

While escalation typically causes standard market pullbacks and triggers volatility due to high global crude oil prices, defense counters tend to receive a distinct “war premium”… earn more REVENUE and PROFIT compared to other companies.