THINKCOMPOUNDING

Stock markets and mutual funds have been testing investors’ patience for the last 18 months, from September 2024 until now. Equity mutual funds  invest in stocks, so when we talk about stocks, we are also talking about equity mutual funds . Major stock market indices like Sensex, Nifty, Midcap, and Smallcap touched all-time highs around September 2024 and have been moving sideways in a range since then. This phase is testing investors’ patience. Is it normal for markets to mo

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...

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 wondered how this return had played out over the years and how the journey of this return had been year on year? I will explain this basic concept in this blog.   I have taken example of a real mutual fund scheme launched in April 1997. In the below table, column 2 shows absolute return given by this scheme each calendar year (Jan – Dec). A

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...

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,...

I keep getting queries like ‘Is NPS good?’ ‘Can we invest in NPS for retirement?’ ‘ Is NPS better or Equity mutual funds better ?’ I thought of answering these questions through this write-up. However, let me clarify that this is not a comprehensive write-up on NPS . NPS (National Pension System) The National Pension System is a defined-contribution pension system in India regulated by the Pension Fund Regulatory and Development Authority. NPS is basically to encourage you to

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