Our investing strategy in action

In 2012 Mr Ganesh had Rs 50 lakhs to invest. His objective was to grow his money without taking unnecessary risks. He also expected a flow of regular income from his investments. His investing time horizon was long term.

Keeping above requirements in view, we suggested following investing strategy to Mr Ganesh to achieve his investing objectives.

Invest the corpus of Rs 50 lakhs in Nifty 50 Index Fund. Allocate a small proportion of the capital towards income generating strategies. Reinvest any income generated into high quality stocks, mutual funds etc.

In 2022, Nifty 50 index is at 18000 levels. In 2012 it was at 6000. Because Mr Ganesh’s initial corpus was Rs 50 lakhs and it was invested in Nifty index fund, so a three time increase in Nifty means the initial corpus of Rs 50 lakhs has now grown to Rs 1.50 crores.

But the real cherry on the top is still ahead. Using our income generating strategies, the portfolio income generated over the years is available to the client to either withdraw or reinvest in the long term portfolio. Thus the client’s returns are compounded not only through passive long term holding, but also through generation of regular income over the investment holding period.