Financial Planning

Hi .. I am your SIP .. My Full name is Systematic Investment Plan ... I don’t exactly remember how & when was I born nor do I remember who gave me my name but if my memory serves me right it’s been more than 15 years since the time I was born. My father is Equity & Mutual Fund is my mother. You all know my cousin brother quite well I suppose. Born to Govt Securities & Bank, he is much older to me & a favorite of mostly all Indian households.

Power Of Compounding:- “Interest of Interest ” As stated by Mr. Albert Einstein: - “The most powerful force in the universe is compound interest” One of the most basic premises of investing is that your money should multiply manifold over time and this  multiplication of money growing is called as “Power of Compounding” Compounding refers to the re-investment of income at the same rate of return to constantly grow the principle  amount year after year,  This is the most important aspect to build long term wealth.

Retirement planning? ohh!! Are you kidding? i am just 32 Years old. I was asking my one of the prospect. Sir, what are your plans when you retire? What kind of amount you would like to have? some question - answers :- Q - I am just 32 Years of age.....still lot of time in retirement. Why should I do it now? My Reply  :- Sir, when you have time on your side, you earn more on the money you invest, like Capital + Interest + Interest of Interest :)  its call as power of compounding.

Why One Should Invest In Mutual Funds ? An Initiative by IDFC Mutual Fund

Savings Vs Goal Mismatch Here we will converse about Your Financial Goals Vs Kind of Saving Required, Goals can be classified as :-  • Emergency money planning  • Buying a house • Buying a car • A holiday abroad • Retirement Planning • Education & Marriage Planning for Kids • Any other Financial Goal (owning / starting your own business) etc.,

Middle-class Indian family needs advise,which is completely different than the affluent Investors. Middle-class families has been hit sometimes by job cuts, too much on inflation side, as the housing prices are too high in India, Rent is getting more costlier, basic lifestyle is even getting costlier as inflation is over 9%, day to day things are getting costlier which are need based. High food inflation, Electricity Prices getting high day by day, Petrol prices are higher, auto rickshaw fare, vegetables and so on.....for them......list never ends...

Case of Mahindra Scorpio Vs Shares Of Mahindra M&M  (Scorpio – 7.54 Lacs) (7,50,000 / 12.73 = 59230 Shares) Share Price in Year – 2001    Rs. 12.73 March – 2010 Spit 10 to 5 Total Shares Now (59230x2) = 118460 Share Price as on 4 th April,2013 = Rs. 855 Shares x Price (118460 x 855) = 101283300 7.54 Lac invested for 12 Years is worth = 10.12 Cr