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*What is Rule 72?*

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.


We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.


This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years. That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved..

Hope it helps you in your day to day investments and other finance related activities.
Age 30:
Kiran - Wants to get Wealthy Slowly. SIPs Silently. Believes in India Growth Story.
Gullu - Wants to get Rich Quickly. Only Positional, Speculation, Churn. Ego trip. Noisy.

Age 45:
Kiran - Is Wealthy
Gullu - Wants to get Rich Quickly.


Investment works slowly 🐌🐌🐌

But takes off like 🦅🦅🦅.

Compounding works when choose right and sit tight
Good things in life never come easy. Take any country, only a small percentage of population is wealthy. Only 1% of us can be in top 1%. Wealth helps to avoid money worries, which is the main worry for most of the population.

Markets over the long run have been providing around 15% annualised returns. We believe India becoming $10 trillion economy over next 12 to 15 years is very much possible. This means growth in many sectors resulting in good wealth creation for investors.
Happy friendship day to all
Don’t compare yourself to others. You aren’t running their race. Compare yourself to yourself two years ago.
*_ABSL Tax Relief 96 Fund_*

👉 Catagory : ELSS/ Multicap

Launch Date :March 29 1996

Fund Manager : Ajay Garg,

*AAUM 9814.16 Crs*

*_Portfolio Composition_*

*=> Large Cap 44.53%*
*=> Midcap 44.22%*
*=> Small Cap 11.25%*

👉 Number of Stocks 45

👉Top 10 Holdings
1) Reliance Industries Ltd 2)HDFC Ltd
3)Honey well
4)Kotak Bank
7)L& T
8)Bayer corp science Ltd 9)HDFC Bank
10)Gillette India Ltd

👉Top 5 Sectors
=>Petroleum products =>Finance
=>Consumer Non Durables
=>Industrial capital Goods.

*👉Over weight on Pharma, Industrials, Consumer Goods*

*👉Under weight on IT, Financials,Energy,Metals*

Returns as on Nov 2019

*1Year 5.38%*
*3 Year 12.66%*
*5 year 10.40%*
*10 year 11.63%*
*Inception 23.65%*

*One of the Flagship Fund in tax savings scheme under 80c*

Since fund is overweight on pharma and underweight on IT and financial - it's performance is slow in last 1 year.

As pharma stocks are recovering..it should give good returns in coming years.
Invesco India financial services fund
Period. Return
1 yr. 23.41%
2 yr. 14.84%
5 yr. 14.39%
7 yr. 15.70%
10 yr. 15.71%

It's a theme fund, invest in financial companies
If your goals are aggressive and the time frame is short, you will either have to allocate more money to that goal or downsize your goals.

Expecting that you will be able to get a higher ‘r’ in the short term in the equity market is amazingly common and not very practical.
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Many people woke up today wishing they made better financial choices 20 years ago.

And 20 years from now people will be waking up wishing they made better financial choices TODAY.

“The best time to plant a tree was 20 years ago. The second best time is now.”

- Chinese Proverb
RISK remains same either in bull or bear markets.

We just ignore in bull and over analyse in bear markets across all asset classes.

Risk may be in the form of capital loss, liquidity, not beating inflation ...so on.

Investments in equity is must to create wealth, before taking any investment call - give respect to RISK.