MyWay Wealth Weekly Update (Issue #7): Kiyosaki’s success mantra & Bharti Airtel’s turnaround

You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something.

— Robert Kiyosaki

Trivia: A recent Credit Suisse report states that the top 36 Indian families own more than a quarter of India’s GDP!

All of us have been working hard and are determined to do so. Over our lifetime, we will earn a decent amount as well; but, are we sure about making it to the top 36 mentioned above?

Let’s do a small exercise – Most of us have been earning since quite some time now. Let’s simply add all our CTCs since our first job.

Approached at a round number which is basically the sum total of all that you’ve earned. Now, think of your current balance reflecting in your bank account.

Quite a stark difference, yes?

Why is it so? Where did all our earnings go? The answer is simple, we spend and save whatever’s left of it. Investing is considered a luxury. Most of us believe in working hard to earn instead of letting our earnings work hard for us.

Investing is the golden word here. The wiser your investments, more efficiently will your money work for you.

Having said that, here’s an illustration of how equity as an asset class is known to build fortunes over a long period.

A resident of Amalner (a village in Maharashtra), Mohammed Anwar Ahmed happened to invest in shares of Wipro in the year 1980. This happened by chance; Satish Shah a traveling stock-broker met him and got him interested in the idea of investing INR 10,000.

Cut to 2015. The INR 10,000 invested has grown to a massive INR 575 crores and in addition, he has received a total dividend of INR 118 crores over the course of the past 35 years.

This was the story of how an average 27-year old went on to retire a multi-millionaire!

Now, as humans we have a tendency to think up of excuses as to why it is not possible for us to do the same and the first reason would be that in the year 1980 INR 10,000 was also worth a lot more in today’s money terms.

So, let me get that out of the way by sharing that INR 10,000 adjusted for inflation (to compute the Time Value of Money) at 8% for a period of 35 years brings it to the equivalent amount in 2018; this amount comes to INR 1.86 lakhs.

Give this a deeper thought. Even you have this INR 1.8 lakh; and even if you do not, you can easily set aside some amount every month to get there at least over the next few months.

Fun Fact: Do you know if you had done SIP of INR 15,000 in Franklin India Prima Fund for 15 years then the current value of your investments will be INR. 1,02,40,679 (CAGR of 16.31%)?

Now that we’ve understood the benefits of long-term planning and investing in equity, let’s take a closer look at the week that went by. After all, small time blaze makes a long-term.

Headline equity indices fell by 2.21% on the basis of negative sentiments and global uncertainty.

Headline Equity Indices in past week

Shares of Bharti Airtel gained the most this week. Shares gained by 7.70%.

Fund nameHold (%)
ICICI Pru Infrastructure Fund9.44%
SBI Infrastructure Fund7.01%
Franklin India Focused Fund5.82%
ICICI Pru Bharat Consumption Fund Ser 2
5.42%

Fund News:

  • Axis Mutual Fund decided to change the fund manager of Axis Equity Hybrid Fund from Shreyash Devalkar, Ashish Naik and R Sivakumar to Ashish Naik & R Sivakumar with effect from November 26, 2018.
  • HDFC Mutual Fund has decided to change the minimum application amount for all plans and options of HDFC Floating Rate Debt Fund Wholesale to INR. 5,000 from 10 lakhs earlier.
  • DSP Mutual Fund has decided to allow investors to choose any date for SIP, STP and SWP investments for all open-ended schemes from November 20, 2018.

If you have any concern, please write to us at ask@mywaywealth.com or call at +918048039999. We would be happy to answer your query.

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