How to Earn Crores from Share Market by SIP Investment | Compounding Income

Well, you must have heard people talking many times that people become millionaires from the stock market. They earn crores of rupees, but how? How does money come from the stock market? Well, today in this blog, you are definitely going to learn, understand, and in this blog, I am going to give you a piece of very good advice.

The first thing we wrote here is SIP. SIP means Systematic Investment Planning. Now, the more complicated the systematic investment planning seems to you, the easier it is to understand. See, we said first that people earn crores of rupees, become millionaires, but how do they become? There are two ways to earn money from the stock market.

Either invest, so one way is investing that we put money and the others trading. You think we are going to talk about trading in this series. We will learn it in detail, but today when we are understanding investing, then when we talk about investing, for example, a person has put 5000 rupees in a stock and he is waiting for the stock to increase.

You learned from fundamental analysis, you picked a good stock, you put money in it. Now let’s assume that the stock has doubled, it has become of 10,000 rupees. Now what will happen? You will say that we have a profit of 5000, but we have become millionaires, not millionaires. We definitely made money, but nothing happened with it. Wealth was not created with it, which we wanted.

I have a question, you tell me. I want to clear your concepts. I will take time, but you will love it. We take a bath every day. Wheat food every day. Wed exercise regularly. We know that regular efforts are necessary for regular results. If your salary comes only once a year, how will it be? You will say that it will not be good at all, and if it comes twice a month, you will say that it will be very good.

It means that you get a salary every month because you work every day for it. You get money from the market. For that, I will definitely explain to you how people earn crores of rupees, but for that, the investment should also be regular. What is the meaning of a systematic investment plan? The market is going up, going down, going up, going down.

Here we beat volatility. Some people say that the market is going up a lot. It is not the right time to invest money now, or it is going up, invest money, and when it is falling, people sell it. They don’t invest money, but it can be bought. Warren Buffett says invest in redtop enjoy the green. You should always invest in the market when people are fearful in the market and when they are greedy, they should sell it, but were not talking about buying and selling here.

We are talking about the long term here and will tell you what will happen with it. Here we are talking about that for example, you thought that every month on 1st or every month on 5th, you thought that on 1st and 5th, anyone can choose period. I will invest 5000 in the stock market every month.

Now what can happen with this? You can become a millionaire with this. Now how can you become a millionaire? For this, you will have to understand a very simple system. There is a simple concept that we call compounding. The day I understood compounding, I lost my mind. Why did I lose my mind? I will tell you now.

I have just taken the example of 5000. Youkan think of it according to your capital. I will explain you compounding. It is a very simple concept. Once you understand, your life will be made. See, I told you at the beginning of this series that you have to double the money and we talked about the rule of 72.

What did we understand in the rule of 72 that whatever rate of interest we are getting, for example, 12% is getting, then if we divide it by 72, then we will roughly find out that our money will double in 6 years and our goal is that in less time than 6 years, we will get more than 12% returns? Now how can we get those returns? We are going to talk about maximization.

Now what is compounding? If I invest anywhere, for example, I get returns from somewhere and my investment is 10lakhs. Now if I get 10% returns for example, then what is the10% of 10 lakhs? You will say 1 lakh. I got a return of 1 lakh in a year.

My capital has increased from 10 lakhs to 11 lakhs. Now what is the meaning of compounding? What do most people do when the money increases, the returns you get, the interest you get, most people spend it.

If you spend it, the money will not increase. For example, someone’s capitalist more, someone’s can be 10 crores, it can be 100 crores. What do we mean by this? We need to take the least time. If your maximum money doubles in 6 years, then the person who has a capital of 10,000, his capital will be 10,000 for₹ 20,000, but the person who has a capital of 10 crores, his capital will be₹ 10 crores for 20crores.

This does not happen in a day; it does not happen in night. It takes years. So in 3 to 6 years, the capital of 10 crores to 20 crores has increased in 3 to 6 years. Now, if this process continues, then 20 crores will be 40crores, 40 crores will be 80 crores and 80 crores will be 160 crores. Shall tell you a secret today? Rich people are becoming rich because they understand this. They understand to double the money.

Today a man is on a capital of 10 crores, but how many cycles did he taken 3 to 6 years? 1, 2, 3, 4. Within 4 cycles, now those 4 cycles can be of 3 years, 4 years, maximum we have talked about 6 years. So we do 6 into 4, so you will say that it has been24 years. We will definitely work on reducing it, but it will be 24 years when we are doing purely passive investing. If you invest actively, you can beat it.

So we have to beat it. Isai that if within 12 to 24 years, a man is reaching from 10crores to 160 crores, now we have not adjusted the inflation. Many people will say that there is inflation, inflation is also increasing, the inflation is also increasing around 8%to 7%, so the value of₹ 160 crores, which is today, may not be after 12 to 24 years, it may be less, but definitely it will be much more than 10 crores.

If it is much more, I am telling you for numbers, because probably you are new that 10 crores are equal to 160 crores, but the man who is not understanding compounding today, he is earning 10,000, 20,000,₹ 30,000 and spending all, he will never be able to come in this process and will never be able to become rich. So this is highly important.

Now I have explained the concept to you. Let’s come to the point when we are talking about SIP. Now what happens when you do SIP, now I will take you to the screen and show you exactly that this is 5000per month. If you invest, where can you invest? What are your instruments? The first instruments that we invest in stocks. In stocks, you have the facility in India that you can invest Indian stocks and if you want, you can invest in US stocks.

If you want to investing US stocks, you can go to IND money and invest. First of all, the account opens for free on IND money. Here you do not have any charges, there is no brokerage. You can have got IND money and open a US stock account. After that, whenever you fund your US stock account, you will get 1000.

I told you in the starting that there is a surprise for you. When you make your US stock account on IND money and fundi, when your balances added to it, you will get a share of up to 1000. So this is a giveaway for you. This is our collaboration with IND money. So for this, you are getting free shares from IND money.

Now, in US stocks, I will tell you that there are some benefits of investing and definitely we will talk about the concept. When you funding US stock account, you can invest in companies like Apple, Google, Amazon. We already use their products. Now what is the benefit here? First of all, when we talk about Indian stocks, for example, you want to invest in MRF. Now you say that the stock is above 80,000.

Now I do not have 80,000, but in the Indian stock market, you have to buy the entire share. What is the benefit of US stock? If you want, you can say that I have to invest ₹100 and the share, youkan says that if we talk about dollars, it is of 100. In today’s date, it is above₹ 8000. So if you want, you can invest 100. So what is the number one benefit here? You can do fractional investment.

Now, one is fractional investing. This is also a concept. You must know that fractional investment is done in US stocks and not in Indian stocks. The second thing here is that whenever you do SIP, you get rupee cost averaging when you invest in Indian stocks. Now we will discuss this concept little bit, but you know one thing that our currency, if we talk about the last year, it is getting depreciated a lot.

Where you were seeing the dollar was of 72, now it is of82. Now if you had invested in US stocks, let’s say that the stock is of 100 dollars and it did not increase atoll in a year. I assume that when the dollar was of 72, then according to that you were investing 7200 and if that one-rupee share did not increase, then your 100 dollars without your traditional investment…you know that our Indian currency is continuously depreciating over the years.

So if you do it in the future, let’s say tomorrow instead of 82, which I want to be, but if share has increased to 8200 rupees. So you get an advantage because it reaches 100 and you know that it is possible that the dollar will reach 100 rupees, so if it reaches 100 rupees, then without doing anything, this 100-dollar share of yours becomes 10,000 rupees.

So this is an advantage of investing in US stocks that you are not only getting rupee cost averaging, you are also getting dollar cost averaging and what is the benefiting this when we are talking about SIP, then you can SIP on INDMINI in the US stock account. When you fund, youkan SIP in US stocks.

Now we were talking that if you investing Indian stocks or investing US stocks, then what returns can your 5000 investment give you? Understand this, see you can google yourself. You will get a lot of SIP calculators. Here I open a SIP calculator for you. Just a second, so here I have opened a SIP calculator for you.

It will come now. You see here, if you invest 5000 rupees every month, I have taken the expected annual returns of 15% here, because if you look at Nifty, I will show you the chart of Nifty here, so Nifty has given about 15% returns in the last few years.

Now Nifty has given, similarly if you understand Nasdaq, now what is Nifty, it is very important to tell in this series, so I will take one more minute, I will explain Nifty, Sensex and Nasdaq to you.

Which will be the best mutual fund for you? So we hear a lot of names of mutual funds. How to choose the best mutual fund for you, we will understand it in detail according to you? See it will be a very detailed blog next. Now we were talking that SIP can be in stocks.

SIP, when we were talking about instruments, it can be in Indian stocks, it can be in US stocks, it can also be in mutual funds and if you want, you will get a blog on ETF, what is ETF, you will get a detailed blog on what are exchange traded funds, you can do SIP in this too.

So today we are understanding stock SIP, that if you see one stock which is fundamentally strong, now see what you are understanding from this series, you did fundamental analysis, by doing fundamental analysis, you chose the stocks which are very good, in that you say that I think one stock is very good, you start investing in that stock, you do not put 5 in a month, you put 5 in every month, but what will happen with that, were going to understand that now

, but before that, we said that we will explain the index to you, so in the index, you understand what is the index, you talk about Nifty, Sensex, see what happens, we say that the market is falling, now you are seeing that there are more than 4000 companies in the market, so how do you know that the whole market is falling,

so the major companies in the market, by combining them, an index is made, by which we can see that the markets increasing or decreasing, so now if we talk about India, there are two exchanges NSE and BSE, NSE means National Stock Exchange, BSE means Mumbai Stock Exchange,

now I ask this question many times, I ask again, what do you think, more companies are listed once and BSE, to pick up money from any company, you have to launch your IPO in the share market, when it comes to launch the IPO, IPO means Initial Public Offering, there are many Imposing the market, you must have heard,

then there is Pat IPO ,Zomato IPO, Policy Bazaar IPO, Naica IPO, so there are IPOs, IPOs pick up money, so they have to be listed on the exchange, most of the companies in India are listed on both NSE and BSE, but still, you will Tellme by commenting that which companies are listed on both Noseband BSE,

now NSE’s top50 companies are made by Nifty, and BSE’s top 30 companies, and this is according to the market cap, are made by Sensex, so we see Nifty and Sensex and tell that Nifty is increasing means the market is increasing, Nifty is increasing means the market is decreasing, Sensex is increasing means the market is increasing, so we see Sensex and Nifty and find out about the Indian stock market,

in the same way, when we talk about the US, then there is Nasdaq in the US, in which most of the IT companies are there, so in Nasdaq you see 100 companies which are in IT, the top 100 companies in the US in the IT sector, after this you hearth name of S&P 500, in which there are 500 companies,

in the same way there is Dow Jones, so this is a different index, this is the US index, now what is the advantage in them, I am telling you to understand Nifty 50, NSE’s top 50 companies, if any company’s market cap goes down, then it will be out of Nifty, so we are going to understand in detail in the coming blogs,

so Nifty will always be top 50,Sensex will always be top30, will be the top companies, now what I was telling you that how people become rich and how people become rich, the concept we have to understands that when you do SIP, even if it is of 5000 rupees, we said that Nifty has given are turn of around 15% in the last few years, so we are talking about Nifty, you are seeing Nifty is running continuously over the years, now you see here, if you get an average return of 15%, you can get more or less, we took an average of 15 and you keep investing continuously,

for example, if you have a year of 222 years, you can change it according to you, how many years you want to invest and you can reduce your amount, someone invests 5000,someone can invest 50,000,everyone’s capacity is different, someone can invest 500 rupees month, everything will work,

I have taken an example that people say that how people become millionaires from the stock market, how do they become millionaires by doing SIP, so if you invest 5000 here, according to 15%, so you see here, you invested only 13 lakh rupees, 13.2 and your wealth gain is of 90.3 lakh rupees, means your expected amount after22 years will be more than 1crore rupees, so for more than 1 crore rupees,

you invested only13 lakh rupees, that took over the years, now if you think, today you must have grown up lot, most of the youth read my blogs, when your father was born, then for you, in your name, only 2000 rupees, let’s say you are 22 years old, you would have started SIP of only 2000 rupees and according to 15% you would have got returns, so today for you, he would have collected 41 lakh rupees,

now you can think for your future, it is possible that can add 20,000 more months and you say that I only need money within 10 years, Indeed money within 10 years, we are taking the average, so after 10 years, you will have about55 lakh rupees, so what you are understanding today, how money is gained through SIP, because your investments only of 24 lakh rupees, but you will have 55 lakh rupees, but here the magic of Sips that if a person starts his SIP and he forgets it completely,

then you know what he will do in one generation, if you say that I will invest 20,000rupees, which may be big amount for some people, but by mistake I will increase it to 0, I am not saying that it will happen, just see the magic of SIP,

if a person works for 100 years, which maybe someone has done till now, but you can be the one and you forget, then you are reading the numbers, read the numbers, it is 4,80,000 crores, not even2.5 crores would have been invested in 100 years,

only 20,000 will continue, but with compounding you will say, Mr. Pushkar what is this joke, can this become 4,80,000 crores, it can be, this is the magic of SIP, you can do such activities yourself, this 100 years is an unrealistic example for many people, but I will tell you one thing, my SIP is not of 20,000,it is not even of 2 lakhs, it is a little more, my SIP, when I see these figures, then I myself go crazy that we Cando this for our generation,

it is an example of 100 years, so most of you will not live100 years, but I try to live, so we promote fitness too, but if you do this for 50 years and you do it, and example, anyone’s amount can be anything, my amount is a little more, but it is an example,

if a person does 1 lakh rupees, then these figures will not be digested by anyone, you talk in your house that if someone invests 1 lakh rupees in SIP, for50 years, if he gets 15% returns, then how much money will be there,

I will hide it, your investment is only 6 crores, but here almost 1400 crores are being made, you will stop and say what is this joke, but this is the magic, this is how people become rich with SIP, now today you have not understood only SIP, what you have understood today, understand this, first of all, we have completely put aside one thing,

what we did is that the volatility of the market is sometimes up, sometimes down, sometimes up, sometimes down, we do not care, we are always investing, up and down, so overall we get a steady growth, this is number one, second if I said you are investing in USstocks.in the stock market, then what is the benefit, you get the average of the dollar cost, our rupee depreciates, it will also be beneficial.

So your 1500 crores will be 1, but if the dollar increases, it can be more.

Youkan make a US stock account, it is good. Other than this, there are some other features on IND money that I use, you will also know your net worth. Whatever is the balance in all your bank accounts, the investment in your mutual funds, the investment in stocks, there is no need to track separately.

So I like that feature. Now, I told you that you are safe from volatility here. You get steady growth. The second thing is that if you see that it is beginner friendly, a new person does not know much, he does not have much knowledge. Now he likes a good stock, let’s say ITC. So if you want in ITC, you can invest regularly. You like Google very much.

You can invest regularly in Google. You know that there are good companies. You like Asian brands, you can also hold a blue chip company and you can invest regularly. I say any amount; you say I have 500rupees every month. I want to invest 500 rupees. No problem, start it and that is beginner friendly. There is Avery low probability of you being at a loss.

Over the years, you will get benefit. You understand, whenever you keep money in the bank, you make a policy, you give money to mutual funds. In fact, we will also understand mutual funds. Where is all this money going? All this money is going to the stock market, it is going to the stocks because returns come in stocks, so they give you a fixed small return.

You gifted, you feel that I will get7-8-9% but the returns must be coming from somewhere. The bank is definitely making money by giving loans, but it also invests. The bank is an active investor. So you understand that.

Here I told you that it is also beginner friendly and finally think about the long-term. Nothing will happen in the short term with SIP. I will tell you today. Someone said that it will happen in a month or two months, there will be very few returns.

Your horizon should be big. Now how big should it be? I told you about a calculator. You Google it according to you that if you do SIP, what is the amount you do, what are your goals  Okay, play with this calculator because with this, the calculator told you, SIP calculator, you will definitely get a calculator like this. Take any calculator, but why do you need to play with this calculator?

Because it will build a good habit of yours. What is a good habit? Because you will be motivated to invest and want you to invest. I told you that I will give you good advice and that is, today at any level in life, whether you are able to add 500 rupees a month or you are able to add 5000rupees a month, you are able to add 50,000 rupees a month.

The first thing is that you should invest 10% of your income. You can have a little pain today, but if you read a book, the richest man in the Babylon, this is the biggest secret of becoming rich. Whatever you are earning, take10% of it and invest it and it will definitely create wealth for you in the long term.