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,...