Have just Rs 1,000 to invest? Worry not! Build enormous wealth via this hack!

I’ll share, how one can start with as little as Rs 1,000 directly in the equity markets and build a Rome out of it!

Capital markets have gained widespread acceptability in India. Many individuals want to invest in stock markets and wish to generate returns that could beat the fixed instrument returns as well as the inflation. However, most first-time investors believe that in order to start investing in stock markets, you need to have lakhs of rupees to start with. But guess what, that’s nothing but just a myth! Investors can start by investing even as little as Rs 1,000. Further, you can increase the investment amount in the future once you start saving more!   

Wondering that we brought another article related to SIP and mutual funds investing? Wait! This has nothing to do with either of them but instead, I’ll share, how one can start with as little as Rs 1,000 directly in the equity markets and build a Rome out of it! Is it becoming hard to believe? Go through this calculation then! 

So, let's begin!   

There was a boy called Ashok, born on May 19, 1988. By the time he turned 17 i.e. in the year 2005, he had gained a fair idea about the stock markets and made up a decision on his birthday to start investing. However, many taunted and even laughed at him because of the amount he’d decided to start with i.e. just Rs 1,000. 

His strategy was that on each of his birthdays till he gets a decent job, every year, he will invest just Rs 1,000 in the stock of Asian Paints. And, when he gets a job, he will increase his capital by two-fold and so on.   

The above table shows the details of his age, followed by purchase date and the number of shares purchased & purchase rate (closing price of that day) along with the total amount invested.  

You will be amazed to see the outcome. Ashok had invested a total  amount of Rs 1,27,000 and as of date, the market value of his investments is worth Rs 5,80,475 with XIRR returns of 27 per cent and absolute returns of 357 per cent. Isn’t it amazing?!   

This brings us to the conclusion that staying invested through the course in a fundamentally strong and sound company is the best strategy. Simply put, time in the market is more important than capital. Just like Rome was not built in a day, building wealth in the equity market also takes time.   

Did this inspire you to initiate something like this? Drop your views in the comments section.  

1 comments on article "Have just Rs 1,000 to invest? Worry not! Build enormous wealth via this hack!"

Balaji V

Wonderful live example which simplifies the concept

7/31/2022 8:39 AM

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