A bird sitting on a tree is never afraid of the branch breaking because its trust is not on the branch but on its wings. Believing in your investment strategy is similar. Your faith in where you park your money should be strong enough to carry you through market swings.
A sum of INR 3 crore is a substantial nest egg, but how and where to invest it depends primarily on your financial goals, risk appetite, and investment horizon. But let’s talk about how you can maximise profit from this.
Long-term investments in equity markets, despite the ups and downs, have proven to be one of the best ways to achieve substantial returns. Historically, equities have provided an average annual return of around 15%. This can significantly grow your wealth over time due to the power of compounding.
Now, how do you decide which stocks to pick? I use the Roots and Wings philosophy. Roots represent companies with a strong foundation – low debt, high return on equity, and top-quality management. Wings signify companies with a consistent growth in revenue and profits, and those which have achieved market leadership.
Spreading your investments across a portfolio of such carefully chosen stocks can provide stability and potentially high returns. In addition, considering investing a portion in blue-chip and dividend-yielding stocks. These can provide a steady income stream and capital appreciation over the long run.
Real estate is another area that can generate good returns, but it requires substantial involvement and has a longer liquidity cycle. Since land is a raw material for a businesses, investing in quality businesses will usually give better long term results.
Remember, it’s not about timing the market, but time in the market that yields maximum profits. That said, making the right decisions requires a significant amount of research and expertise. At Jama Wealth, we offer tailored Portfolio Management Services (PMS) to our clients. We meticulously build a well-diversified portfolio suited to your individual needs, providing a seamless investment experience.
As the saying goes, “The best investment you can make is in yourself.” The more you learn about investing, the more confidence you gain in managing your wealth.
