Have just Rs 1,000 to invest? Worry not! Build enormous wealth via this hack!

Have just Rs 1,000 to invest? Worry not! Build enormous wealth via this hack!

Karan Dsij
/ Categories: Trending, Mindshare

I’ll share, how one can start with as little as Rs 1,000 directly in the equity markets and build a Rome out of it!

Capital markets have gained widespread acceptability in India. Many individuals want to invest in stock markets and wish to generate returns that could beat the fixed instrument returns as well as the inflation. However, most first-time investors believe that in order to start investing in stock markets, you need to have lakhs of rupees to start with. But guess what, that’s nothing but just a myth! Investors can start by investing even as little as Rs 1,000. Further, you can increase the investment amount in the future once you start saving more!   

Wondering that we brought another article related to SIP and mutual funds investing? Wait! This has nothing to do with either of them but instead, I’ll share, how one can start with as little as Rs 1,000 directly in the equity markets and build a Rome out of it! Is it becoming hard to believe? Go through this calculation then! 

So, let's begin!   

There was a boy called Ashok, born on May 19, 1988. By the time he turned 17 i.e. in the year 2005, he had gained a fair idea about the stock markets and made up a decision on his birthday to start investing. However, many taunted and even laughed at him because of the amount he’d decided to start with i.e. just Rs 1,000. 

His strategy was that on each of his birthdays till he gets a decent job, every year, he will invest just Rs 1,000 in the stock of Asian Paints. And, when he gets a job, he will increase his capital by two-fold and so on.   

Age  

Date  

Qty   

Purchase rate (RS)  

Total amount (RS)  

17  

19-05-2005  

-26  

39  

-1000  

18  

19-05-2006  

-17  

60  

-1000  

19  

18-05-2007  

-12  

82  

-1000  

20  

20-05-2008  

-8  

123  

-1000  

21  

19-05-2009  

-10  

100.5  

-1000  

22  

19-05-2010  

-9  

216.7  

-2000  

23  

19-05-2011  

-7  

287  

-2000  

24  

19-05-2012  

-5  

372  

-2000  

25  

20-05-2013  

-8  

483  

-4000  

26  

19-05-2014  

-7  

537  

-4000  

27  

19-05-2015  

-5  

773  

-4000  

28  

19-05-2016  

-8  

962  

-8000  

29  

19-05-2017  

-7  

1135  

-8000  

30  

19-05-2018  

-6  

1310  

-8000  

31  

20-05-2019  

-12  

1368  

-16000  

32  

19-05-2020  

-11  

1510  

-16000  

33  

19-05-2021  

-6  

2843  

-16000  

34  

19-05-2022  

-11  

3047  

-32000  

   

29-07-2022  

-175  

   

580475  

  

The above table shows the details of his age, followed by purchase date and the number of shares purchased & purchase rate (closing price of that day) along with the total amount invested.  

You will be amazed to see the outcome. Ashok had invested a total  amount of Rs 1,27,000 and as of date, the market value of his investments is worth Rs 5,80,475 with XIRR returns of 27 per cent and absolute returns of 357 per cent. Isn’t it amazing?!   

This brings us to the conclusion that staying invested through the course in a fundamentally strong and sound company is the best strategy. Simply put, time in the market is more important than capital. Just like Rome was not built in a day, building wealth in the equity market also takes time.   

Did this inspire you to initiate something like this? Drop your views in the comments section.  

Previous Article Ready for a different take on this Murugappa Group stock? Know why we think it's a perfect valuation!
Next Article Do you own this Low PE, High ROE stock with a positive financial trend that made a fresh all-time high on July 29?
Rate this article:
4.4

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR