To be a Millionaire .....

Hi Guys,

  I know this is my long pending blog, I have been crafting it for longer than I taught, earlier I would take only weeks to complete my blog but this time, it took more than anticipated. If anybody said to expect the unexpected I would have laughed at them and moved on, this was the case a couple of years ago even now it is not worst but I have changed (updated to be more precise) my perception based on a few events that I have come across.

We have seen the basics of the stock market and how to play around with it with some ground rules in my previous blog posts( if you haven't gone through it please check it out). Now let us come to a Million $ Questions related to the title and try to seek an answer for them in this blog( I tried my best). People usually say if I burn out now my upcoming generations can reap the benefits. I want to be the change.

    We all know in the recent few months Global market conditions were not been too good based on the following situations

1. War between Nations

2. Raising inflation.

3. Lower rupee value.

4. Recession fear (kind of situation)

5. Trade Wars

How to defend ourselves in this kind of scenario, most of my friends who ever invested in the stock market, were upset about these things and this affected their investment values. But I have warned them by sharing my view on our Nifty index indeed by January it took time to reach there but eventually it happened. I didn't stop only by sharing my index view but also by other investment opportunities whenever I got a chance.

I don't want to over-stress myself as well as I am already affected by so many other things, I wish even my enemies should not get into this kind of situation. I know something is wrong with me but my friends are the ones who identified it at an earlier stage and keep advising me to take medical precautions.

Investment basket:

As all know, we are in the process to achieve to own financial goals, based on our knowledge, we might have fabricated our own way to achieve it. I was a bit extensively slanted towards my financial goals.

We might have heard this as his words  "Don't put all the eggs in a single basket" is a famous English proverb and not from Buffet.

We all might know Warren buffet because he was a good investor and Coco cola is his favourite drink and good investment too.

In my perception, Mr Ronald Read > Mr Warren buffet. Please google about Mr Ronald Read if you are interested to find what he achieved in the stock market and how he used it, I got to know him through a book called Psychology of Money. As we grow further and the market and its instruments are also getting extended we should adapt to the changes as early as possible to achieve our goals.

MR. Read for us:

Easy steps to follow and stay away from loans as per me and we are called DIY-Investor (Do It Yourself, investors)

I just followed a few famous fellows who are making big money and fund managers, hedge funds and financial advisors from a different country and identified a pattern they all had in common by following the famous proverb. they diversified their investment in the following ways

1. Debt funds

2. Bonds

3. Real Estate

4. Metals (Gold, Silver and some are invested in commodities too)

5. To my surprise our water is also considered a commodity from the near past

6. Investing in unlisted shares.

7. Unicorn investment.

8. Equity investments.

9. Very low % of cash in hand (at least equal to a few months of salary in our terms)

10. Mutual funds.

Above are the global patterns, I do follow a similar pattern when I follow I kept updating it, with my group of friends who are interested in Financials. as I don't want to grow alone.

Even though I predicted that the market may go down to certain levels I didn't stop my SIP (Systematic Investment Plans) so few of my friends asked me if I know the market will fall so still why did I follow SIP, I just wanted to follow my discipline as an investor, Few might know we are contributing our SIP money and taking part in market as Indirect DII. Please let me know if we  want to discuss the following terms in deep

1. FII

2. DII

3. HNI

4. Retail investors

My way of investment:

As health comes to our primary part invest in good term insurance and has some decent health insurance as well there is a good difference between Term insurance and health insurance.

1. Term insurance.

2. Health insurance.

3. VPF (Voluntary Provident Fund)

4. MF (Mutual Funds)

5. Gold sovereign bonds.

6. cash in hand for safety.

7. Few monthly donations (this might help us in both ways Self stratification and monetary terms under 80CG in income exemption)

Note: Even warren buffet had a friend called charlie Munger, they both believed in their investment and the value behind it, remember one thing we are not just investing in stock we are investing in business when we buy a stock.

Warren with Charlie Munger:

Investment analysis:

If you ask me why VPF, it is yielding a higher interest rate than any FD and most Mutual Funds.

Please don't ask few bonds are giving higher returns than VPF, I know that too but please check their rating before investing in them. I follow this website to do analysis on bonds https://goldenpi.com/ 

Mutual funds analysis can be done through many sites, basically, they share their investment monthly once so based on that I keep switching between them based on the shareholding pattern and my analysis too. I don't simply follow any return % in past, because it matters a lot how it will perform in future, not the past.

Gold Bonds:

It is like paper gold, and we get a certain % as an interest for holding this gold we don't see we trade( I mean buying and selling) frequently in gold, so I assume this is a good investment. Rest I leave it to you to decide.

Key points in the image:

Process:

We can't be a millionaire overnight it is a process and we need to follow a few things strictly as always stick to the process one day we will be there for sure. Keep Mr Read in mind and we too can achieve it.

Sometimes people ask how to achieve it by accumulating money in small, try this whenever you spend money on something, try converting it to % of your salary, at some point in time we might understand the core of this calculation, I realized by following this way. so sharing it too. For everything, patience is key.

Additional Image related to the content :

I hope the other investments are self-explanatory, so I stop here. Happy investing guys :) Keep saving keep Growing. please share your views too, if you are interested in investment.