Hey
welcome back!
Today is
11th August 2021 and you will get the video before 8 O'clock in the morning.
1st of
all, Let's check the valuation of the stock market.
Date -
11-08-2021
BSE -
Sensex - 54554
PE (Price
to Earning) – 29.90
Price to
Book Value – 3.48
Dividend
Yield - 1.0
Right now
stock market valuation is at 29.90 PE (Price to Earning) means for earning one
rupee we have to give 29.90 rupees right now, which is expensive deal as it is
delivering just 3.34% return, and right now bank saving accounts are offering
3.5% to 4% interest rate and hence the expected return is much less than the bank
saving account. Bank saving account offers risk free return of 3.5% to 4%
return then why the hell we will take risk of investing the money in stock
market for 3.34% returns expectations.
So, we will not infuse new money
in stock market right now and instead we will wait for either earnings of the
companies to pick up to justify the valuation or vice versa. We don’t have any
problem buying the markets at higher level, but we will only buy it after we
get valuation justification. Till then we will park the money in debt fund
especially, in GILT Fund.
The Fund
that we are investing is, Nippon India Gilt Securities Fund.
SIP
AMOUNT - 5000
NAV - 33.1926
No. of
Units allotted - 150.628
and this
is the current status of stock market portfolio
Total
money invested - 10,49,605
Market
Value of Investment - 15,84,921
Change – 5,35,316. (51%)
So,
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