Start your Investment Journey
Module Units
- 1. Saving & Investment
- 2. How is investing different from savings?
- 3. When to start investing?
- 4. What care should one take while investing?
- 5. What is meant by Interest?
- 6. Basics of Investment Planning
- 7. What are the fundamental rules of investments?
- 8. What are the investment concerns that need to be addressed, while investing and choosing the assets?
- 9. Financial Plan – Concepts & Factors for Success
- 10. Explain - Disciplined and Regular Investing
- 11. How inflation can affect your financial plan?
- 12. What is the importance of Asset Allocation?
- 13. What’s your risk appetite and risk tolerance?
- 14. How to plan for your life-stage?
- 15. Stage 1 - Your First Job
- 16. Stage 2 - Getting Married, Having Children, Life Goals Increase
- 17. How to save to buy a home?
- 18. What is an EMI and how are EMIs calculated?
- 19. Rising Loan Interest Rates – What should you do?
- 20. Why It Is Sometimes NOT Better To Prepay Your Loan?
- 21. What to Do When You Find Yourself in Too Much Debt?
What are the fundamental rules of investments?
There are three fundamental rules of investments:
a) Start Early
b) Invest Regularly
c) Invest for a long period of time
Example:
Raj started investing money to the tune of Rs. 5000 pm diligently. He began this discipline at the age of 22 years of age. He was earning a rate of interest of 12% compounded each year. While his friend, Amrita started investing money to the tune of Rs. 10,000 pm. She was also doing this very religiously. She also earned 12% compounded. She started the process of doing the investments month on month, at the age of 30. What is the total investment adding up to at the age of 50 years of age?
As you can see from the table the cost of waiting / delaying for Amrita is Rs.37,63,806. Raj benefited from eight more years of compounded growth than Amrita.
Therefore it is very important to start investing early. The earlier, the better for your investments.
Related Modules
Copy the URL
Leaderboard
# | Name | Score |
---|