FPA Edutech

Over the last 15 years, had you started an SIP (Nifty 50 TRI) & held for at least 2 years, you would have never seen a negative return on it.

While this data gives you confidence,

- Dont start an SIP with anything less than 3 years in mind while investing in large caps,
- 5 years while investing in Midcaps &
- 7 to 8 years while investing in a small cap.

3 years ago | [YT] | 17

FPA Edutech

Further videos should be in which language?

3 years ago | [YT] | 5

FPA Edutech

Some very interesting observations around the Mutual Funds performance,

If you look at the last 3 years CAGR, 

In the Small cap Mutual Fund category, 
(a) Index Returns = 27.11%
(b) Average MF in this category generated = 29.98%
(c) Worst Fund generated = 21.66%
(d) Best Fund generated = 52.78% 

Similar is the Midcap category,
(a) Index Returns = 25.89%
(b) Average MF in this category generated = 24.67%
(c) Worst Fund generated = 17.37%
(d) Best Fund generated = 38.13%

Observations,
(a) Index generated 5-8% more than the worst performing MF
(b) At the same time, the best performing MF generated 12 to 25% more than the index
(c) Above all, the difference between the best MF & the worst MF is a HUGE 20-30% 

Food for thoughts,
We may argue this is hindsight & difficult to know what will work in the coming 3 years but rewards for getting it right & opportunity loss for getting it wrong is HUGE for both Active & Passive investors

3 years ago | [YT] | 9

FPA Edutech

(Q) Whats the best way to start small & yet be able to generate a decent corpus?

(A) Step Up SIP

If you simply put 20,000 of SIP every month, you will be able to accumulate 1.8 cr in 20 yrs

BUT, with increase in salary, if you increase your SIP by 10% each year (Next year 22,000 & so on),

You will be able to accumulate 4 cr.

The difference between 20,000 flat monthly and increasing it by 10% each year is 2.2 cr. (4 - 1.8)

Next time your salary increases, increase your SIP first & then your life style. Happy Investing!

3 years ago | [YT] | 11

FPA Edutech

There are 3 factors for wealth creation,
(1) How much you invest
(2) How long you invest
(3) Returns

You cant control your returns, so,

Focus on saving more & for as long as you can. Simple discipline #investing will help you beat 9/10 return seekers around.

Dont complicate, its simple!

3 years ago | [YT] | 14

FPA Edutech

Assume you want to retire at 60 with a corpus of 5cr

If you start at age 40, you will need an SIP of 55,000 to accumulate 5cr

If you start at 45, you will need to do a 1,05,000 SIP

Every 5 year delay increases your required savings rate by 100%

Start early!

3 years ago | [YT] | 12

FPA Edutech

What do you prefer?

3 years ago | [YT] | 3