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Wednesday, August 13, 2025

[Money and Markets] The Good Investor Quiz


Mild represents information, consciousness, knowledge. The competition of lights needs to be celebrated in the identical spirit as effectively.

Whereas information has a deeper that means, this blogs’s context is round investing. So, we are going to use a well-known RapidFIRE approach to see that you simply loosen up your monetary quotient.

So right here you go.

Welcome to your moneyandmarkets-2024

1: Your wealth has doubled from Rs. 1 lakh to 2 lakh. What’s the % fall when it drops again to 1 lakh?

2: Persevering with with the above instance, what is the fee of return to this point in your funding.

3: Nifty worth index has gone from approx. 12,000 factors to 24,000 factors within the final 4 years. What is the CAGR or compounded common fee of return?

4: With the identical fee of return as above, how a lot time is Nifty more likely to take to go from 24000 factors to 48000 factors?

5: Right now, If I’ve Rs. 2 crore and I retire. I’ll don’t have any extra revenue and this portfolio might want to handle my bills. My expense is Rs. 10 lakhs a 12 months. How lengthy will the portfolio have the ability to fund my bills?

Assume fee of return and inflation is similar.

6: In the identical case as above, to illustrate I’m 45 age now and I wish to plan my bills until age 90. What approx. withdrawal fee ought to I exploit to let the portfolio final that lengthy?

Assume fee of return and inflation is similar. [Help: If you don’t know the answer, use the withdrawal rate assumption in RapidFIRE tool. Click here.]

7: What’s the asset allocation indicator telling you – Purchase, Promote or Make investments Extra in Equities?

You may search for the indicator right here: www.unovest.co/asset-allocation-indicator/

8: In case your portfolio is price Rs. 1.5 crores immediately and it returns 18% on a median yearly, in what number of years will it turn into 24 crores?

9: If the identical portfolio returns solely 12% on a median yearly, what number of years will it take to succeed in 24 crores?

10: In case you are spending Rs. 1 lakh per 30 days immediately and costs are rising at 12% common per 12 months, in what number of years will this 1 lakh price of expense turn into Rs. 2 lakhs per 30 days.

Set your own withdrawal rate to find out how your retirement portfolio will help you fund your expenses post retirement. Set your own withdrawal rate to find out how your retirement portfolio will help you fund your expenses post retirement.

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So, you see, compounding works for each returns in addition to bills. You want to work on each.

Now, for those who reply all these questions appropriately and share them through e-mail or feedback, you’ll get prolonged premium entry to RapidFIRE and get a by no means earlier than view into your monetary freedom journey.

Nonetheless, if you’ll find any errors within the above questions, you’ll get a shock present.

As somebody famously reminded us, Lakshmi follows Saraswati.

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