Making twenty times your money through Income Tax savings?

How Much should I Invest?

The heart of a good investment plan is equity investment, begun early in life.

A lot of people ask me what is the right amount to invest in an SIP. The simplest answer to that is it should be AT LEAST 10% of your take home salary. If you are taking home Rs. 30,000 per month, then you absolutely must have an SIP investment of Rs. 3,000 per month to build long term savings.

The math behind this is not the point, at least initially. It is the habit of investing that is crucial. It helps to build awareness of two things that are absolutely crucial to understand.

First, you are on your own. There is no pension in old age, there is no medical care in India worth the name, and in today's world don't expect your children to take care of you. In matters of investment you must be steely eyed and realistic. Your parents are the worst guides in this matter because their world was very different. They had pensions, they had medical care, they had subsidized housing.

Second, what you get is NOT your salary. It is your salary, pension, house, medical, all rolled into one. You are effectively borrowing from the future, your own future, to finance your life today.

Take a minimum of 10%, put it aside because you will surely need it. If you cannot do that, life is going to get very tough very soon.

Betting on India

Narendra Modi's leadership is looking positive for India and as investors we cannot afford to miss this story. Those who do not invest in equity markets now could miss a massive bull run over the next few years, and so we are at a stage now in August 2014 where staying out of the market is a much bigger risk than investing in the market.

How big is the risk?

We can get a good look by revisiting the last decade or so. If you invest Rs. 1 Lakh in the market today and get the kind of growth seen in the last decade or so, you could get about 18 to 20 times your money - which is Rs. 18 to 20 lakhs from Rs. 1 Lakh in ten years.

If on the other hand the markets perform very badly, you may get a slight negative return over ten years - Rs. 1 lakh may become about Rs. 80 thousand or so. The risk is Rs. 20,000, the prize Rs. 20 Lakhs. This is the kind of investment bet that makes people rich. Of course, there are no guarantees of returns and no limits to profits.

Invest now with us in good equity funds and be part of the India Story. write to us to learn more.

Raised 80C Limit - where should you invest?

The Finance Minister has raised tax breaks under Section 80C to Rs. 1.5 Lakh from Rs. 1 Lakh per year. All things remaining the same, the Finance Minister has given us all an additional Rs. 50,000 to invest in EPF, PPF, Insurance Plans, NSC or Mutual Fund ELSS.

We think the move is a no brainer investment opportunity. Invest all your additional sums in 80C ELSS funds.

Why?

Because the returns from ELSS funds are far, far superior to any other avenue of investment. These are ideal wealth builders.

Just to the side is a simple chart that shows the actual performance of ELSS vs. PPF (which is the best of the rest) from Jan 1 2003 to Jul 1 2014. Simply stated - PPF grew your money from Rs. 1 Lakh to 2.7 Lakhs in 11.5 years, ELSS grew the same money to Rs. 19 Lakhs from Rs. 1 Lakh. If the ELSS fund repeats this performance in the next 11.5 years, then this 19 Lakhs will grow to (hold your breath) Rs. 3.6 Crores Tax Free. The PPF will be exactly Rs. 7.3 Lakhs after another 11 years.

What is the point of guaranteed returns from PPF if they lead to this kind of loss when compared to ELSS?

Write to us now at SphereGreen.Investments@gmail.com to invest in good ELSS funds.

Who is responsible for your financial well being?

So what is your lifetime financial plan?

Write to us at SphereGreen.Investments@gmail.com and we can help you get started on investing for a secure future right away.

This Bonus season, we want you to Gamble.

Yes, that’s right; Gamble.

Take a risk, do something new, the sort of thing you do routinely for your Firm; only this time around we just want you to take a moment to do something like that for yourself. Like in your job, just playing it safe will get you absolutely nowhere in your financial life. EPF, PPF, FD, Bank Account, Insurance, these will get you peanuts because they have a guaranteed maximum return.

So, take a part of your bonus and put it at stake in an Equity Mutual Fund. Equity Mutual Funds are zero tax, offer unlimited returns and have no guarantees. They can make you rich, very-very rich; nearly ten times richer than an FD.

If you are game, then write to us and we will get you onto the stakes table in no time through a well-chosen Mutual Fund. If you are still hesitant, then let me leave you with my best wishes, along with a quote from the best financial brain of all time: Warren Buffett:

Since the basic game is so favorable, Charlie and I believe it's a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of "experts," or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it. My own history provides a dramatic example: I made my first stock purchase in the spring of 1942 when the U.S. was suffering major losses throughout the Pacific war zone. Each day's headlines told of more setbacks. Even so, there was no talk about uncertainty; every American I knew believed we would prevail.

Above all, don’t delay. Write an email to us now at SphereGreen.Investments@gmail.com. It’s your finances after all!

Why Invest in Equity Mutual Funds?

Take a rational view.

You don’t have sufficient equity exposure...

Most Indians invest as follows: EPF, PPF, Infra Bonds, Insurance Policies and Fixed Deposits. This portfolio does not provide equity exposure and therefore has no chance of beating the rise in prices. Saving in a fixed deposit today is guaranteed to make you poorer because inflation is much higher than interest rates.

The returns are larger, much larger than you think...

The Sensex has given stupendous returns and these can be well captured through Equity Mutual Funds. The median 5 year return on the Sensex is about 17% per year. This will more than double your investment. The median 10 year return is above 15%. This means that on an average, equity markets grow Rs. 10 Lakhs to Rs. 43 Lakhs in 10 years. In a good 10 year period your money will grow from Rs. 10 Lakhs to Rs. 75 Lakhs.

To top it all, good Equity funds beat the equity markets handsomely. For example the HDFC Top 200 has returned 10 times investors money in the last 10 years. Rs. 10 Lakhs invested in this fund on Jun 20, 2003 would have been Rs. 1 Crore and 2 Lakhs on 19 Jun 2013. Despite the big crash of 2008 and all the troubles in between.

What's more, these returns are tax free!

The risk is smaller, much smaller than you fear...

History tells us that it is incredibly difficult for a long term, patient and watchful investor to have losses in Equity Mutual Fund investments. The Sensex has positive returns for 90% of all 5 year periods in the last 30 years. The Sensex has positive returns for 98% of all 10 year periods in the last 30 years. And there is NO 15 year period with negative returns in the last 30 years. None at all!

And we are there to watch over your investments.

SphereGreen's expert analysis helps you stay invested in the right funds at the right time. With us by your side, you can be sure that you get the best value for your investment.

Our products are designed to help you take a risk you like to shoot for the returns you want. We promise to structure your investment to provide the best possible return on this risk. Look through our pre-optimized structures on the Our Products page that can be ordered by email to spheregreen.investments@gmail.com.

To learn more you can access our e-book by clicking here (best in Chrome Browser)

What is a Mutual Fund?

A Mutual Fund is a trust that collects money from various individuals, families and companies, and pools the money together for the purpose of investing it. A Mutual Fund Scheme (For example UTI Opportunities) has a specific investment objective that it must adhere to.

For example UTI Opportunities is a fund that invests mainly in the shares of large Indian companies listed on the Bombay Stock Exchange or National stock Exchange. All Mutual Funds Companies in India have to be approved by SEBI and all their Schemes are launched with the full knowledge of SEBI. Further, all distributors of Mutual Funds, such as the owner of SphereGreen, have to be registered with the Association of Mutual Funds in India (AMFI).

To learn more you can access our e-book by clicking here (best in Chrome Browser)