Droplet Wealth

 Couple of weeks back, Microsoft backed Open AI came with its latest version of the AI Tool - ChatGPT-4o. Everyone's already excited about how this AI tool is going to make their work and life more easy and efficient. Given the context, It got us thinking  - Are there automation tools that help us create more wealth ? That will make our investing more efficient ? That will make our life more easy. Can AI /Automation help us finally discover the holy grail that will make us super-duper rich?    Like all comman men, we saw if it can help us find the best mutual fund? or find that exciting Option Strategy ? or give a formula that can help me find next Infosys, Reliance or HDFC Bank? or help me do Algoritham trading that has made crores of rupees for Institutional investors? or heck can it atleast help me buy a "Winnable lottery ticket?  We realized that they may or may not give us the answers we seek but for assure none of these guarantee success....

     Anecdote - We recently we met a client and pitched the 1 Crore plan. He was quite happy and agreed to start the investment journey with us. A few days later he sent me a insta-story about how somebody can make 15 crores and asked me – Why I pitched “Only 1 Crore” when we can make 15 crores! We have always been wary about YouTube shorts and Insta stories which give a false notion it is very easy to make money in stock markets and become super duper rich. Our suspicion is that the only motive of these social media posts is to entice people and dupe them of their hard-earned money. Confirming our suspicion, we recently came across scam which used should social media to reach a lot of well-educated, literate people and cheated them.   Here's what happened… Madhav had already invested Rs 30 lakh through an app called KKR MF, which he had been led to believe was managed by the global financial services group. Mind you, Madhav is not a simpleton, but an intelligent...

 Continuing with series of understanding Why Investing is Easy , We thought to bring our own example to the table. This is true story of a Share that we bought when we were just newbies.  We bought a stock at INR 240 and It went to INR 2700 .  Thats a neat 11X gain. Meaning 1 lac invested is worth 11 lacs now and 10 lacs Invested is worth just a above one crore at 1.1 crore.. Fanstastic! One can see Investing is so "easy" , you just have to buy a stock and wait for it to go up. Oh Wait! We just realised we did not tell you how long we waited to make 10 times money we invested.  We bought a stock at INR 240 and It went to INR 2700 in 8 years Now it makes more sense, we just need to buy a stock and wait for 8 years to make 10X. T hat works to a return of ~31% yearly compounded. So we said wow what if we can compound at this rate for another 2 years? We have anyways waited for 8 years.. 2 more years wont hurt! Magic..  In Just 2 more years, we will have 2 Cror...

                                 Ok time for Chapter#2. A quick recap on what we saw in Chapter#1, that a monthly investment started in Jan 2019 in an Equity Mutual fund could have given a return of 19% -23% P.a. or a Lumpsum investment made on the same day would have doubled by now.. Yet not many invested. Lets try and answer that through this blog.                      When we invest, the only thing we look for is "Returns" and here is the return profile of the Investment started in Jan 2018.  An investment of 3000 monthly that is 36,000 for the year will have a ending of value of only ~36,000 with absolutly no growth and in one case,  The current value is lesser than our invested value, Alas!  now tell who will have the courage to invest in Jan 2019 ? Remember the ad - Investment are subject to Market Risks.." That would ...

 We promised to bring you the Chapter#2 of the Why Investing is easy but in the interim, Government published the Interim Budget and I think its reasonable that our readers expect us to write about it and we write about it. So Chapter#2 can wait... Here's the News from the Interim Budget. “ If it ain't broke, don't fix it.” The Government has not done much mumbo-jumbo in the budget and there is hardly anything for middle class as such. Things look far better now than they were in the past and good thing is Government not trying to tinker things, that are working fine, just for the sake for some "Budget-drama".  Where does that leave us? If you have been reading our budget blogs , you will appreciate the fact that we always want to give a personal touch to what the take aways from the Budget!                                    Take Away# 1 Fix it if its Broken This is so much in contrary ...

 We have been planning to write a piece with this title for sometime now. It so happened that last week I was speaking to a good friend from Investing community and he shared a experiance with me. He chanced upon a Doctor and learnt that there are from the same place. So the conversation boiled down to - "What puts food on the plate question". So One was a doctor and another was a full time investor/advisor. The Doctor was quick to point out that - Being Investor is such a easy profession unlike others, One can easily make 30-50% returns every year. My investor friend would only laugh since he knows that he is the not 1st and he will not be last to "think" that investing is Easy.  But of course, Investing is easy. Let me put the facts out here.. Lets say this is Jan 2019 and you started simply started SIP of 10K in a Mutual Fund that invests only in Top 100 stocks or lets say just did a one time purchase of about 1 lac. Here is how the results will look today -  In ...

                                    Happy Bhogi! Let this be a  Properous Year for all us as we plough the seeds of hard work and seek a good harvest!                         Between Pongal last year and this year, All major Indices of the Indian Stock Market has performed generously, the Nifty 50 has given a return of 21%, the Midcaps have given 51% and small caps gave a more outrageous return of 60% ! and apart from these few select indices like Pharma & Auto returned 37% & 46% respectively. All this in just one year!      As if this  bait is not enough ,the SIP returns since the end of Pandemic look even more extra-terrestial ranging from 33% to 23% yearly!  What do you do now? EXTRAPOLATION            Lets us ...