Posts

The Ultimate Guide to Making Rs 1 Crore Fast: Understanding the 8-4-3 Rule of Compounding

Image
Achieving Rs 1 Crore Quickly with the 8-4-3 Rule Reaching Rs 1 crore may seem daunting, but the 8-4-3 rule of compounding can simplify the process. This rule highlights the power of compounding over time, specifically targeting a 15-year period to reach the Rs 1 crore milestone. Becoming a Crorepati: Common Questions and Strategies Many people wonder how to become a crorepati or how to make Rs 1 crore quickly. These questions consistently rank among the top internet searches. Numerous books and articles offer advice on wealth accumulation, with a common theme emphasizing the importance of long-term investment and the magic of compounding. While initial investments may not show immediate significant returns, patience and discipline in investing lead to substantial growth over time. The secret lies in allowing your money to grow through compounding. But how long does it take to accumulate Rs 1 crore? The duration depends on your investment amount and the returns you achieve,
Post a Comment
Read more

Can NRIs based out of US and Canada invest in Indian mutual funds?

Image
Yes, NRIs based out of US and Canada can invest in Indian mutual funds. However, AMCs do not have a uniform policy to deal with US and Canadian clients. Currently, close to 14 fund houses receive investment from investors based out of these two countries and another five AMCs receive investment only from US. Broadly, there are two categories of fund houses here - where investors are not required to physically present in India and vice versa. Here is the list of fund houses where investors are not required to be physically present in India: Aditya Birla Sun Life Mutual Fund Nippon India Mutual Fund Quant Mutual Fund Sundaram Mutual UTI Mutual Fund Interestingly, these fund houses allow such NRIs to invest in their MF schemes without any restriction that too through online transaction. Let us look at the fund houses which insist NRIs to be physically present in India: 360 One Mutual Fund Axis Mutual Fund DSP Mutual Fund (Only lumpsum) ITI Mutual Fund (Only lumpsum) Kotak Mutu
Post a Comment
Read more

Financial Wisdom from Shree Ram's Life and the Epic Ramayana

Image
The Ramayana, an epic woven with dharma, duty, and love, doesn't just sing of divine battles; it whispers financial wisdom too. By stepping into Lord Rama's sandals, we can learn to navigate the intricate jungle of our finances and emerge victorious, just like he conquered Lanka. 1. Planning: The Bridge to Your Goals: Lord Rama's life initially echoed a secure future, destined for kingship. But fate threw him a curveball with a 14-year exile. Yet, even in the wilderness, Lord Rama remained resourceful. Remember Lord Rama's meticulous preparations for battle? He forged alliances, trained tirelessly, and strategized every move. This teaches us the value of financial planning. Set clear goals, map out a budget, and research investment options. Every rupee saved and wisely invested is a sturdy plank on your bridge to financial freedom. 2. Strategic Alliances: Building Your Monkey Army of Support: Remember Lord Rama's alliances with Sugriva and Lord Hanuman? Just like he
Post a Comment
Read more

Tax planning in a nutshell:

Tax planning is like organizing your finances to pay the least amount of tax possible. It's about understanding the tax rules and using them to your advantage. Why is tax planning important? Tax planning can save you a lot of money. By understanding the tax laws and making smart financial decisions, you can reduce your tax liability and keep more of your hard-earned cash. Here are some useful tips for tax planning: 1. Know your tax bracket: Your tax bracket is the rate at which you pay taxes on your income. Knowing your tax bracket can help you make decisions about how much income to claim and how much to save. 2.Take advantage of deductions and credits: There are many deductions and credits available to taxpayers. Deductions reduce your taxable income, while credits directly reduce your tax bill. 3.Consider tax-advantaged retirement plans: Retirement plans like NPS, Life Insurance Pension Plans offer tax advantage. 4.Seek professional advice: If you have complex finances or need h
Post a Comment
Read more

Returns expressed in Xtimes and Annualized CAGR

40,000 times in 100 years is 11.3% A bungalow in Nepean Sea Road, South Mumbai was bought for around Rs.1 lakh in 1917. It is now going to be sold for Rs.400 crores. The value of the bungalow has multiplied by whopping forty thousand times in 100 years. Real estate is always discussed in terms of how many times it has multiplied. Rarely anyone in that industry calculates XIRR or annualised returns. 40,000 times in 100 years when expressed in terms of XIRR is 11.3%. Not a bad return at all. But nowhere as glamorous as saying 40,000 times. Many tell me something like that the property they bought 25 years ago has multiplied by 10 times. Sounds fantastic. But the annualised return works out to 9.6%. When I say Birla Sun life Tax Relief’96 has provided around 26% returns in last 20 years, it doesn’t sound much sexy. When I rephrase that the fund has multiplied wealth by 100 times in 20 years, it suddenly looks very attractive. Generally, finance people always talk in terms of annualised re
Post a Comment
Read more

Various Levels of Financial Planning

  Financial planning involves various aspects of managing and optimizing your finances to achieve your goals and secure your financial future. While the specific levels or steps may vary depending on individual circumstances, here are the common levels of financial planning: Setting financial goals: Identify your short-term and long-term financial objectives, such as saving for retirement, buying a house, or starting a business. Budgeting: Create a detailed plan for managing your income and expenses. This involves tracking your spending, categorizing expenses, and finding ways to save and reduce unnecessary costs. Emergency fund: Set aside money in a separate account to cover unexpected expenses or financial emergencies, typically equivalent to 3-6 months of living expenses. Insurance planning : Assess your insurance needs, including health insurance, life insurance, disability insurance, and property insurance. Determine the appropriate coverage to protect yourself and your
Post a Comment
Read more