TIME VALUE OF MONEY

Patience and discipline are required not to make the wrong move at the wrong time the results can be dramatic it is far more common to do the wrong thing than to not do the right thing.

Considering inflation @ 5 %

LETS PLAN TO GET RICH TOGETHER

INVESTORS NEED TO SAVE REGULARLY INTO ASSETS THAT CAN BEAT INFLATION TO MEET THEIR FINANCIAL GOALS.

MARKET TIMING DOES IT MATTER ?

3

Marketing Timing: Does it matter ?

Say , an investor INR 10,000 in equities for 10 consecutive years at the peak of the market every year.
Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sensex Value 4,069 4,548 4,281 5,075 5,933 4,438 3,713 5,839 6,603 9,398 13,399

This provides a compounded annualized return of 10.70%

2006

Marketing Timing: Does it matter ?

Say , an investor invests INR 10,000 in equities for 10 consecutive years at the lowest levels of the market every year .

Year 1996

Sensex Value 3,367

1997
1998 1999

3,361
3,893 3,740

2000
2001 2002

5,001
3,604 3,469

This provides a compounded annualized return of 11.50%

2003
2004 2005

3,049
5,591 6,493

2006

11,280

Investments into sensex at 2007-2008 levels.

Invest for long term