Many are bitten by the entrepreneurial bug these days. It is a fashion statement for the young and old alike.
“Jobs” are pretty boring. It kinda gives you a high when you are doing your own thing.
But still, becoming an entrepreneur is easier said than done. It is this enlightenment that keeps many people stuck to their office cubicles.
To all who are sitting on the fence, I wanna ask, “How would you feel if I showed you a way to become an entrepreneur without actually building your own business?” – without going through the grind, without getting your hands dirty, without leaving the comfort of your present jobs,….
The first thing to do when building a business is to know what is the amount of capital investment you can put in.
Other businesses need a business idea before deciding on the amount required. But this business is different. You only need to decide the amount of capital investment you can put in. And then you can buy an idea. Howzzat?
And the best part is that you don’t need much to start with. You can start with as low as Rs 1000 if you plan to invest regularly or as low as Rs 5000 if you are planning to invest a lumpsum amount.
The next thing to do is to hire a fund manager. How on earth, you would ask? A fund manager would charge an exorbitant amount. Yes, you are right. But with this idea you get to select a fund manager from the market.
You perhaps already got a whiff of what I am coming to.
Yes, all mutual funds have fund managers managing their money. You just need to select the one mutual fund scheme you want to go with. SEBI, the financial regulator in India has capped the mutual fund expenses to 2.5%. So you’re paying just 2.5% of your investment as fund management charges to your fund manager.
So if you invest Rs 5000/- you are paying your fund manager just Rs.125. And there are many fund managers which are even cheaper than that.
If you don’t know what a mutual fund is – it is a scheme wherein a large number of investors pool in their money and a professional fund manager invests the money for them. The daily NAV (Net Asset Value) is published so you can know how much you have gained or lost on your investments.
Depending on the objective of the fund scheme, your fund manager may invest in the debt market or the stock market or a combination of both.
The greatest advantage of investing through a mutual fund is that you are buying into a fairly large portfolio of stocks with just Rs 5000/- or Rs 1000 (if you are investing through SIP). Diversification of your investments at such a low amount is not possible in any other instrument.
These stocks that you are buying into are actually huge business houses. So you maybe buying into a banking business, IT business, automobile business, steel business, consumer durables, cement, automobiles, pharmaceuticals, and many more.
Do you get the idea? With just Rs 5000/- you are actually buying multiple businesses without even registering your own company. Or building your own business.
The performance of mutual funds and its various schemes are available in the public domain. It is very easy to review the performance of your fund manager vis-a-vis other fund managers.
You are the boss and you need to review your fund manager’s performance periodically to know whether your investments are doing as expected. If not, you might want to change your fund manager.
This is the surest and the easiest way to become an entrepreneur. You would just be investing into various businesses through mutual funds with the help of a professional fund manager and earning a decent return on your business without ever building one of your own.