One very important thing while investing is to know why you are making an investment. Can you make your philosophy as short as possible?

Can you say when you are making an investment why you are making the same? Or how much do you expect? or….

Can you make a statement like this for all (All your investments) :

Investment number one: Daughter’s education in a Foreign school

Year: 2023

Amount required: Rs. 3 crores

Year of starting investing: 2004

Asset class: largely equity, with a small shift to debt from the year 10% 2019, 25% in 2020, and 25% in 2021, 15% in 2022. However if one of the years from 2019..if it is a bumper year like 40% jump in equity, a full jump to debt is possible.

Held in my name, wife second holder and daughter nominee.

Expected return: really do not know, but will be happy with about 12% cagr

Instrument: Hdfc Prudence fund: 50% and Franklin India Bluechip: 50%. Shifting to a debt fund will be a fund like Templeton Opportunities fund with a 2 year YTM

Doing a onetime investment of Rs. 5Lakhs and a sip of Rs. 100,000 per month. Yearly reviews to adjust the sip amount, or the tilt towards equity or debt.

May shift schemes, but not alter the debt: equity proportion.

MAKE THIS FOR ALL YOUR INVESTMENTS, let us meet in class 2.

 

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  1. Krishna

    Understand the concept, not the arithmetic. Remember 2004 to 2023 is 19 years. Can u imagine how much would be the amount if it was Rs. 10L p.m. ?? it will be 1.2 crores*19.

  2. Thanks Subra.. Got the point.. concept is important regardless of sip amount whether it is 10k or 1lkh or 10L

  3. now do the arithmetic. I am assuming you know Irr calculation in excel. See how much this amount will become at 12% p.a. I can assure you..it will become much more.

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