Hi Mohit @Investor_Mohit,
What a fantastic journey nifty has had in the last 9 months, so now we are looking to turn that paper profit into hard cash. Lain Kaise.
What a fantastic journey nifty has had in the last 9 months, so now we are looking to turn that paper profit into hard cash. Lain Kaise.
https://twitter.com/Investor_Mohit/status/1349767914505740291
So personally how do I do it? Let’s assume you have invested 1lakh and now it’s turned into 2lakh that’s a 100% return on investment.
From what we already know from past data, long-term stocks or mutual funds tend to give an average return in the range of 8to 12 %. It would be foolhardy to assume you will be able to beat this long term average until and unless you are a very extremely talented genius.
But, since we are not the likes of Jhunjhunwala Ji or Damani Ji, so what should we do?
My solution to this is to grow my savings at just a 12% compounded basis.
My solution to this is to grow my savings at just a 12% compounded basis.
So a 1lakh investment at 12% would be 1.12Lakh at the end of the year. Since in actual we have 2lakh because of this massive rally. I would at such time withdraw 88 thousand and leave the rest as it is.
So if the market continues with its rally we are at least still invested. If not then we have taken out a sizeable chunk of our money.
Anyways at a 12% compounded basis, it would have taken us 4.5 years approx to turn our investment into 2Lakhs.
Anyways at a 12% compounded basis, it would have taken us 4.5 years approx to turn our investment into 2Lakhs.
I assume you will have more queries so feel free to DM me. #investing #investors #invest #Profit #profittaking
*lakin
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