How to create wealth in short term

Hey All,

First of all I would like to thank each one of you for your continuous interest in my blog, I started this blog just one month back and now look at the page views…its almost 1000!!!
This means that I am writing about something which is actually worth reading and investing…That thought alone gives me immense happiness…

My first Post “Baap of Magic Plans” still attracts and amuses so many people that few of my clients who are working in some of the top IT companies in the world told these words…”Subhash, It is too good to be True”…This is not only their opinion, but of many people whom I met keeps telling me the same thing…However once I show them how it works and how it can benefit them, I can see the smile in their face…A smile which says that they have found an investment plan which is worth investing after all…

Recently I met a client who told me that he would rather be interested in a shorter term investment instead of planning for a retirement as he had already planned well in advance for his retirement needs…He said “Subhash, Life is for Living, Blow me up with some short term investment plan”…I gave him a Plan and it literally blew him up!!!

So now I am presenting you all the same investment idea!!! This time with an eye on people who are looking for shorter term…
Hope you all will enjoy it…

(PS: This post may be bit lengthy but I know that if you are really concerned about your money and want to get the best out of it, you may not mind reading each and every line…)

How to create WEALTH in Short term?

Work Hard…….Really Hard…..



Or

Work Smart…..Really smart + Make your money work harder…


Now the million dollar question is….

How will you make your money work harder for you???

Yes….The answer is “By making Right Investment Decisions”



Okay, so that’s it, making right investment decisions is enough correct???

No…Making right investment decisions ON TIME are required…



We have been hearing from a very early age about some conventional theories that say “We should not put all our eggs in one basket”...



So what happens if we put all our eggs in one basket?



It breaks!!!

So what should we do then?



Diversify!!!

Put your money in different baskets, so that even if one basket falls you will have the remaining baskets to cover your interests…

When we talk about short term investment Baskets, these things will come to our mind…
1)Mutual Funds
2)SIP’s
3)Shares and stocks
4)ETF’s
5)FD’s
6)Small Savings in Chits and cooperative societies.

The First four short term investment mentioned above belongs to “Equity” Family



and the last Two belong to “Conventional or Traditional” Family…



We all know that investing in conventional or traditional investment for short term will always give you low or moderate investment returns…



As we spoke about making our money work harder, we shall concentrate on Equity based investments which will give you moderate to very high investment returns…

So when it comes to Equity based investments, what exactly would we want to do to make Profits???

It’s very simple!!!

We would want to buy equities at the lowest price when the market is down…



And, Sell those equities at the highest price when the market picks up!!!

Yes, it sounds very simple, but as we all know it is not that simple as it sounds…

Let me explain…

What exactly would we look for when choosing an equity based investment???
1)S-Safety
2)L-Liquidity
3)R-Returns
4)F-Flexibility +



Guarantee!!!

In most of the cases, a carefully chosen equity based investment will offer one or the other things mentioned in the above list, but not all!!!

If you ask your portfolio manager or an investment banker for suggestions or advice to help you chose an equity based investment plan from the above list, he would suggest you to buy an SIP!!!

What is an SIP???



Why SIP is so attractive???



SIP – Systematic Investment Plan

How it works – SIP is a systematic investment means to tap the volatility of the market…To put it in simple words - It is a monthly investment mutual fund scheme. It will help you to buy mutual fund units regularly at the current market price which in turn will appreciate during the term and help you make profits.

Let me give you a small example.

Mr. X decides to invest in an SIP with a monthly contribution of Rs.10000/-
In the First month the Net Asset Value (NAV) Price is Rs.10/-
So he gets 10000/10=1000 Units.

In the Second month the NAV price is Rs.12/-
So he gets 10000/12=833 Units.

In the Third month the NAV price is Rs.8/-
So he gets 10000/8=1250 Units.

In the Fourth Month the NAV price is Rs.7/-
So he gets 10000/7=1429 Units.

In the Fifth Month the NAV price is Rs.10/-
So he gets 10000/10=1000 Units.

In the Sixth Month the NAV price is Rs.13/-
So he gets 10000/13=769 Units.

So now if we calculate the total investment, Mr. X has invested Rs.60000/-
He has 6281 Units and the current unit price in the sixth month is Rs.13/-
Average unit price for the past 6 months – Rs.10/-
Calculation to arrive on the fund value,
Total number of units*Current unit price=Fund value…
6281*13=81653.

So Mr. X has a fund value of rs.81653/- in his SIP account. He made Rs.21653/- profit on an investment of Rs.60000/-!!!



Why think of anything else??? This should be the best equity based investment plan in the market then???

Wait…There should be some drawbacks as well…

What are the drawbacks of SIP???

1) The best an SIP could do is average out the unit cost as illustrated in the above example.
2) It will not tap the entire downside or upside of the market as desired by every investor. (Buy low, Sell High)
3) It does not give you tax benefits while withdrawing your profits. (You loose a major chunk of profit in paying tax)
4) It takes lot of research and homework to zero in on a good SIP or else your unit price may remain stagnant for a considerable time which will impact your profits.
5) Past performances are not a benchmark or assurance for future performance!!!(Almost all major mutual fund houses have proved it time and again).The reason I raised this point is because almost all mutual fund houses project their past performances as a major selling point instead of projecting their asset allocation…

Even I agree that SIP is one of the most powerful tools to beat the inflation and tap the volatility of the market, but is it the best available method??? Is there any other Investment which could give better returns than SIP???

Welcome to my Investment strategy!!!



I think everyone of us knows this game, you climb up when you reach the bottom of the ladder and you climb down when you reach the mouth of the snake…

Investment nowadays seems to perfectly relate to this Game!!! A small difference would be that today in the market we have many snakes but few ladders!!!



What if I say that my investment strategy will make the snake also to work as a ladder!!!



That is…

We all know that if the Market Grows – Our money also will grow.



What if the Market Falls??? – Still our money will grow!!!



Presenting you a one of its kind investment plan in the entire Industry!!!
This has no competition in the entire equity segment industry…

A magical plan which guarantees you that you will make profit and only profit, irrespective of Market fluctuations!!!
A magical plan which guarantees you that you do not have to wait to time the market, we will do it for you!!!

How it works???

Let us take the same example of how Mr. X made profits in SIP investment…

Scroll up and you will find that Mr. X had invested Rs.60000/- in 6 months and made Rs.21653/- as profit by investing in an SIP…
So total fund value stands at Rs.81653/-(Including investment amount of Rs.60000/-)

What if he had invested as per my suggestion in this Magical plan???
Considering the same illustration shown above, Mr. X would have invested Rs.60000/- in 6 months and would have made a profit of Rs.51429/-!!!
So total fund value stands at Rs.111429/-!!!(Including investment amount of Rs.60000/-)



Unbelievable!!! Is it???

Till now you and your Investment banker thought SIP is the best investment tool available in the market…

Okay, let me tell you how it works…

The magical plan which I showed you purchases units on the lowest recorded unit price in the past 12 months; this directly gives you an advantage of buying units at the lowest price…

Let us take an example,

Mr. X invested Rs.100000/- in this plan in the month of January, The unit price in the month of January is at Rs.10.50/-
In the month of March the unit price went up to Rs.13/-
In the month of June the unit price went down to Rs.8/-
In the month of August the unit price further went down to Rs.7/-
In the month of October the markets recovered and unit price went up to Rs.11/-
Finally in the month of December the unit price stands at Rs.12.50/-

In a normal Mutual fund case, you could claim a profit of Rs.2/- per unit in a span of 12 months as Mr. X would have been allotted units at the price of Rs.10.50/- and the NAV went up to Rs.12.50/-!!!
You could be happy that Mr. X earned almost Rs.20000/- profit on an investment of Rs.100000/-!!!

But as Mr. X had taken this magical plan, He would have received the unit allotment at the price of Rs.7/-…
And as at the year end the unit price was Rs.12.50/-, you would be eagerly waiting to know how much Mr. X had made from this investment right???
Mr. X made a whopping Rs.78571/- profit on his investment of Rs.100000/-!!!



This way of investment pattern will continue for the next 5 yrs and till the term of 10yrs…
At the end of 10 yrs,
Mr. X will get Fund value as Follows,
Fund value=Total No of units*Unit price decided as below…

Mr. X would be allotted units at the lowest recorded unit price every year in the past 12 months...
OR

Mr. X would be Given the Highest NAV recorded in last 7years of the plan…

OR

Mr. X will be Given the Current Unit price at maturity…

Whichever is Higher out of these 3 options mentioned above!!!

Mr. X can ensure that he really do not have to worry about the timing of entry into the plan to make profits!!!

(The above profits are just a rough calculation and it will definitely change from person to person)

Now let us come to the fine prints of this plan…

The Investment amount in this plan is capped at minimum Rs.100000/- and maximum…Any amount is welcome subject to specific requirements…

The Investment term is only 5yrs and the plan term is 10yrs…

Single pay option is also available with a minimum investment amount of Rs.200000/-…

Any person till the age of 60yrs can take this Magical plan…

Advance premium payment option is also available- If you pay 5 yrs premium at once, you will get 10% cash back on the spot!!!

Financial protection for your loved ones in case of uncertainty during the plan term…

Unlimited partial withdrawals after 5 years to meet your unexpected financial expenses…

Addition to all these above mentioned benefits, you will also be getting tax benefits on the investment amount and withdrawal amount as well!!!

I can see some surprised, excited and confused faces…I have tried my best to explain the best investment product (with the most complicated investment strategy) in a simplified language.

For those who found difficulties in understanding the post in the present manner can click here…I have explained the same concept in figures about this Magical plan…It will be very easy for people who are not particularly aware of the equity investments as it is in a descriptive manner.

So now what???



You can post your specific queries here in the comments section so that it would be helpful for others who are looking for the same answer as yours…



I will be happy to address your concern and ensure that you buy this investment plan with zero doubt and 100% satisfaction…