FIRST STEP OF INVESTING IN EQUITIES : INDEX FUND INVESTING

In this season we will discusses how one can get rich very easily than you think.

Getting rich is all about our mind set in practical work. If anybody keeps steadily in his/her mind to get rich, definitely he/she can. But it takes some time and time is very crucial to develop anything in the world.

But our discussion is how to get rich easily, how to create wealth and assets in very easy manner without disturbing our daily life work balance. Yes, it is possible.

Every country wants maximum business environment, why? Here we do not discuss any complex term like Economy benefit, GDP Growth, Foreign Deficit Etc. In layman term Business is a tool to create wealthy.  That’s why every country promotes business in his country to get rich and wealthy. Examples are visible like United state of America, china, Japan, UAE, almost every big business are operated from these countries.

Now you may be an Employee or student, or an entrepreneur or business man, you may think that whether am I able to do big business?  But you may be a part of these businesses. As these businesses grow you will grow together. Obviously business takes some time to grow but definitely it will be giant at time.

Now the question comes to mind how to be a part of these businesses. The answer is by investing on these companies and keeps set patiently.

Every country has its some Index which reflects economy as well as growth of the country in long run. The step is simple just invest your some saving in theses index by buying ETF or Index Mutual Fund route.

Index is a combination of top giant companies of the country; those companies are pillar of the country’s growth.    

NAME OF COUNTRY	INDEX NAME
United nation of America	S&P 500 , Dow Jones industrial average
Hong kong	Hengsang
Japan	Nikkei
India	Sensex, Nifty 50
GERMANY	DAC

 

For example we will discuses about 2 Index, one is Dow Jones industrial average (DJIA) and other is Sensex  both are taken from developed and developing countries respectively.

 

Now you can see the above images Index are starting from 100 points and now they are standing at their high level. If anybody invest in Sensex in the year 1989(when sensex was 100) today the value of investment is more than 42000. So it is the power of investing in Index. 

Similarly,The Dow Jones Industrial Average (DJIA) was first published on May 26, 1896, by two financial reporters, Charles Dow and Edward Jones. At that time, the index followed the 12 largest companies in each sector of the U.S. stock market. Now the Dow Jones Index standing at around 26000 points, which market cap is $8.33 trillion (Dec. 2019)

That’s why I am saying that getting richer and wealthy is easy than you think. Just put your some saving on INDEX FUND or INDEX ETF and set patiently.