How much Money can be Invested in a Year?

Dear Friend!

I do not understand from which angle, that is investing or taxation, you ask this question.

If it is from tax deduction angle, even though I am a chartered accountant, I am not a taxation expert. To my knowledge one can get 100% deduction up to Rs.1.50 lakhs per annum, but please do not take my words for certain.

If you are asking simply from the perspective of investments, simply there is no limit. It only depends on the the investible surplus you have. Even the Indian stock markets can absorb billions of dollar of investments.

Investor Going to Stok Broker to Make the Monthly Investment

If you want to discuss the bare minimum investment per month, you can start as low as Rs.50 a month.

However, if you want investments to make a difference to your life and if you wish to accumulate significant wealth over the lifetime you should invest Rs.10000 to 20000 per months and persist with such investing pattern for about 50 years. The following example demonstrates the possible wealth creation of such humble investments, over very long periods of time on the back of the real wealth creator, the ‘Miracle of Compounding’:

Thank you,

With Best Regards,

Anand

How Trustworthy is Stock Advice on Websites and Media?

I do not know what stock advices these sites are giving, for I do not read those advices. I also cannot talk about the stock advice given by any particular site as it may attract legal action, both civil and criminal.

In the light of the above I would state as follows:

Do not take any advice that predicts gains based on price movements.

Please do not act on advice that uses the words target price and stop loss, again advice that predicts potential gains purely out of price movements.

The above kind of advice is pure speculation that encourages day trading and does not fall under the umbrella of investing.

Instead please read the book ‘The Intelligent Investor’ by Benjamin Graham, which is the bible for investors, then you will not need the advice of the media, stock brokers and the many, so-called experts.