Wednesday, October 30, 2024

[Money and Markets] The Good Investor Quiz

Gentle represents data, consciousness, knowledge. The competition of lights must be celebrated in the identical spirit as nicely.

Whereas data has a deeper which means, this blogs’s context is round investing. So, we’ll use a well-recognized RapidFIRE option to see that you simply 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 charge of return up to now in your funding.

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

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

5: At present, If I’ve Rs. 2 crore and I retire. I’ll don’t have any extra revenue and this portfolio might want to deal with my bills. My expense is Rs. 10 lakhs a yr. How lengthy will the portfolio be capable of fund my bills?

Assume charge of return and inflation is similar.

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 charge ought to I exploit to let the portfolio final that lengthy?

Assume charge of return and inflation is similar. [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 possibly can search for the indicator right here: www.unovest.co/asset-allocation-indicator/

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

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

10: If you’re spending Rs. 1 lakh per 30 days at this time and costs are rising at 12% common per yr, in what number of years will this 1 lakh value of expense grow to be Rs. 2 lakhs per 30 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.

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

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

Nonetheless, if yow will discover any errors within the above questions, you’re going to get a shock reward.

As somebody famously reminded us, Lakshmi follows Saraswati.

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