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[Money and Markets] The Sensible Investor Quiz

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Gentle represents data, consciousness, knowledge. The competition of lights needs to be celebrated in the identical spirit as effectively.

Whereas data has a deeper that means, this blogs’s context is round investing. So, we’ll use a well-recognized RapidFIRE solution to see that you just loosen up your monetary quotient.

So right here you go.

Welcome to your moneyandmarkets-2024

1: Your wealth has doubled from Rs. 1 lakh to 2 lakh. What’s the % fall when it drops again to 1 lakh?

2: Persevering with with the above instance, what is the price of return to date in your funding.

3: Nifty worth index has gone from approx. 12,000 factors to 24,000 factors within the final 4 years. What is the CAGR or compounded common price of return?

4: With the identical price of return as above, how a lot time is Nifty more likely to take to go from 24000 factors to 48000 factors?

5: As we speak, If I’ve Rs. 2 crore and I retire. I’ll haven’t any extra revenue and this portfolio might want to maintain my bills. My expense is Rs. 10 lakhs a yr. How lengthy will the portfolio have the ability to fund my bills?

Assume price of return and inflation is identical.

6: In the identical case as above, for example I’m 45 age now and I wish to plan my bills until age 90. What approx. withdrawal price ought to I take advantage of to let the portfolio final that lengthy?

Assume price of return and inflation is identical. [Help: If you don’t know the answer, use the withdrawal rate assumption in RapidFIRE tool. Click here.]

7: What’s the asset allocation indicator telling you – Purchase, Promote or Make investments Extra in Equities?

You may search for the indicator right here: www.unovest.co/asset-allocation-indicator/

8: In case your portfolio is value Rs. 1.5 crores at present and it returns 18% on a median yearly, in what number of years will it turn out to be 24 crores?

9: If the identical portfolio returns solely 12% on a median yearly, what number of years will it take to achieve 24 crores?

10: In case you are spending Rs. 1 lakh per thirty days at present and mehangai or worth rising at 12% common yearly, then in what number of years will this price double to Rs. 2 lakh per thirty days?

Set your own withdrawal rate to find out how your retirement portfolio will help you fund your expenses post retirement. Set your own withdrawal rate to find out how your retirement portfolio will help you fund your expenses post retirement.

So, you see, compounding works for each returns in addition to bills. You have to work on each.

Now, when you reply all these questions accurately and share them through e mail or feedback, you’ll get prolonged premium entry to RapidFIRE and get a by no means earlier than view into your monetary freedom journey.

Nonetheless, if you will discover any errors within the above questions, you’ll get a shock present.

As somebody famously reminded us, Lakshmi follows Saraswati.

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