Saturday, 13 April 2013

Small droplets make a river utlimately.

In the last blog we were discussing about SIP or systematic investment planning through mutual funds.   Balanced mutual funds with a mix of debt funds and equity or slightly riskier large cap funds earn on an average 12 to 15%  interest in the long term.  If you start systematically investing in these type of instruments, definitely we may be able to beat the inflation and have a sizable corpus at retirement or after 20-25 years.
  • Start small but early in your life.
  • Let the savings be steady without break
  • Don't draw on it frequently but for emergencies in which case replenish at the earliest.       
If you follow a disciplined approach, then a savings of Rs.10000/- can become a Rs. One crore  by 22 years. You may calculate and see for yourself how investment grows and feel the power of compounding  in this spreadsheet link by clicking here.

You may also see the applet in mobile devices.
Contact for your planning advice:  Mukundan SN, CFA, CFP mail:
Mob:  9789098720