“Disciplined investors built their own empire, others just made money”
Stock markets are for the rich, who can throw their money at anything and wait for a bigger fortune. This is the biggest myth I have ever heard, and also the most common myth among retail investors. In the hindsight, this is the only place where millionaires are made from nowhere. All you need to do is to follow few strategies and stick to a discipline. Among many investment strategies in the stock market, Systematic Investment Plan (SIP) stands out to be the least complicated one. Investing in SIP is like learning to swim. The earlier you invest, the greater your returns in the long run. There are two ways to invest in SIP. Either you choose a mutual fund available in the market or you can choose few stocks yourself and keep investing. It is like paying Pre-EMI. When you buy something and pay EMI, you are actually paying an interest to the bank, thereby increasing the cost of the product you bought. The bank decides the interest and the EMI. Longer the duration, higher is the interest. You cannot skip an EMI and have to pay it on the specified date. If you wish to… close in-between, you will have to pay a penalty. The interest rate fluctuates depending on the market condition.
SIP is almost the vice-versa. Instead of EMI, you choose an amount and the market pays you back. The upside is limited only to the market condition. Longer the duration, higher can be the returns. You can skip payment for as long as you need to. You can close it whenever you wish. As I already said, there are two ways. I would suggest choosing few stocks yourself. It may take some time and some expert advice to choose but it will be under your control. There are lots of success stories associated with SIP. People have scaled unimaginable heights. So, set a target and keep investing on a regular basis.