WEALTH

WEALTH CREATION with NIFTY BeES

THUMB RULES
1. Double your SIP amount when PE ratio goes below 15.
2. Halve your SIP amount when PE ratio goes above 25.
Note: Thumb rules when applied mercilessly (by buying SIP) will increase your long term returns from 16% to 20%+(better than most mutual funds produce in the market).

MegaCycles on NIFTY

FREQUENCY of PE Ratio Distribution

This illustrates that very low and very high PEs are unsustainable for long.






POWER of COMPOUNDING

Value Points
1. Equity markets will always go up in the long run - Reasons (a) Civilization will only go up. (b) People will have babies, new products and profitable companies are bound to come.
2. NIFTY50 Index keeps on replacing poor companies with strongest & best 50 companies. This mechanism is unique to stock indices like our NIFTY50.
3. High expense cost of mutual funds will not be hampering growth of your money in case of ETFs like NIFTYBEES with very low costs.
4. There always come several bull markets in between the 20+ years period with which markets reach to multifold levels from where they never return back.
5. Try to exit your investment through SWP (Systematic Withdrawal Plan) only, as per clues given by MegaCycles .
6. 'Long Term' here means wealth creation for your next generation /retirement needs.
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