THINKCOMPOUNDING

Gold price has shot up over the last one year or so. Do you feel missed out? I got a few enquiries to buy gold via the mutual fund route. I suggested that they not get affected by last one year return. It can create FOMO (Fear of Missing Out), hindsight bias and force them to make wrong decisions. I suggested they look at the longer-term picture and take a bird’s eye view of the situation.   I thought of sharing the facts and figures to give investors better clarity to enable

1.    Constant SIP Some of us start SIPs for a certain amount and don’t increase the SIP amount each year along with our salary increments. If the SIP is not increased every year, it will result in a far lower corpus at the end of the investment period. You can check the below table for details. Year SIP amount Assumed return p.a Invested amount Current market value at year end 1 20000 12%              2,40,000 ₹ 2,55,330 2 20000 12%               4,80,000 ₹ 5,41,300 3 20000

Let’s see how we can achieve a 10 crore corpus step-by-step. Let us go one step at a time instead of directly thinking about achieving 10...

Finished reading this book.   Author explains what went wrong with capitalism in US and other developed Europeans countries. U.S debt,...

Finished reading these books   Ram   Story starts with the war between Dashrath and Raavan in Karachapa, a trading town. Dashrath loses...

Finished reading this book   Author provides in depth view of boom and bust cycles in American stock markets during 1970-2003, covers how...

Finished reading this book   I have heard a number of sub-stories of Mahabharata and Ramayana from my grandmother and watched few movies...

Finished reading this book   This is the biography of 19th century oil baron, John D Rockefeller Sr, who was the founder of Standard Oil....

Recently, one of my clients' mutual fund portfolio has crossed the 2 crore mark. I met him in 2016 in an 'Investor Education Program'...

If someone told you that a mutual fund scheme has delivered 15% CAGR (Compounded Annual Growth Rate) over a 15-year period, have you ever...

Have you ever wondered who is working on your money invested in Mutual funds? To start with, your money in mutual funds is managed by...

Finished reading this book The author, Yuval Noah Harari’s first book Sapiens was good. I find the second book Homo Deus not so...

If you got some surplus money, is it better to pre-pay home loan or is it better to invest the money in equity mutual funds? Let’s find...

Sometimes, we fall sick. I heard that fever is good because it removes toxins from the body and kills infections. But when we have fever,...

Finished reading this book. Book explains the origin of Arunachala (red hill) in Tiruvannamalai and the significance of Arunachala in...

Finished reading this book. Author served as Indian high commissioner to Pakistan from 2017 to 2020. This book is a product of in-depth...

I keep getting queries like ‘Is NPS good?’ ‘Can we invest in NPS for retirement?’ ‘Is NPS better or Equity mutual funds better?’ I...

I met this young lady in 2015. She was pro real estate. We discussed about mutual funds at length. She was not fully convinced about mutual