Pocket Money - SEBI Investor Awareness Website - Securities and ...

Pocket Money - SEBI Investor Awareness Website - Securities and ... Pocket Money - SEBI Investor Awareness Website - Securities and ...

investor.sebi.gov.in
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11.07.2015 Views

oard, 2 ashrafis for the second, 4 for the third, 8 for the fourthand so on for all the 64 squares on the chess board.The king found it a very easy reward. But till the 64 th square,the man had managed to gather 18,446,744,073,709,551,615ashrafis!!!! The king had given the man his word so he hadto stick to it. So even after having emptied his entire treasury,he could not pay the man’s full reward.The story underlines the concept of __________________Investment Mantra 2:______________________________________________________________________________________________________3. The Long Run AdvantageThe table below shows you how a single investment of Rs.100will grow at various rates of interest.____________________________________________________________________________________________________________________________________________________________________________________________________________26

Investment Mantra 3:______________________________________________________________________________________________________4. The Tale of the TwinsSunny and Bobby, twins, decide to invest Rs. 3000 every yearwhen they are 25 years old. Bobby just gave up at the ageof 30 whereas Sunny continued to invest regularly. A few yearslater, Bobby decided to make up for all those years so heinvested a lump sum of Rs. 20,000 when he turned 35 andagain invested Rs. 25,000 at the age of 42. Thus by the ageof 45, both Sunny and Bobby had invested Rs. 63000 each.Assuming a growth rate of 15%, Sunny had Rs. 4 lakh whereasBobby had Rs. 3.8 lakh.Investment Mantra 4:______________________________________________________________________________________________________SALSA WITH 72Theory-WiseRoughly, the productof rate of interest andthe period of investmentis 72 if you wantto double the amountinvested.The Rule of 72:____________________________________________________________________________________________________________________________________________________________________________________________________________27

oard, 2 ashrafis for the second, 4 for the third, 8 for the fourth<strong>and</strong> so on for all the 64 squares on the chess board.The king found it a very easy reward. But till the 64 th square,the man had managed to gather 18,446,744,073,709,551,615ashrafis!!!! The king had given the man his word so he hadto stick to it. So even after having emptied his entire treasury,he could not pay the man’s full reward.The story underlines the concept of __________________Investment Mantra 2:______________________________________________________________________________________________________3. The Long Run AdvantageThe table below shows you how a single investment of Rs.100will grow at various rates of interest.____________________________________________________________________________________________________________________________________________________________________________________________________________26

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