@Sumit Mundik

Sumit Mundik

@sumitmundik

₹"Our favorite holding period is forever."₹

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₹"Our favorite holding period is forever."₹
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₹"Our favorite holding period is forever."₹
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₹"Our favorite holding period is forever."₹
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#CharlieMunger Read More...
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let us also know once you find this business 😉 Read More...
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₹"Our favorite holding period is forever."₹
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₹"Our favorite holding period is forever."₹
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Compounding means when the interest income earns more interest. In Equity or Equity mutual fund —-> there is no interest income ( either Fixed or variable ) Mutual fund works by appreciation of NAV how does NAV appreciate ? When the constituent prices of underlying stocks increases + dividends received from constituent stocks. + Any Arbitrage income + Any debt instrument appreciation So one needs to understand how it works. Equities are no doubt risky But there is risk in everything Keep money at home —-> long run it gets converted into black Keep money in bank ——> Interest rate risk Invest money in real estate ——> market fluctuations, encroachment, legal issues Buy gold —-> more riskier than Equity So take calculated risk and invest as per goals. Diversify your investment and stay invested. Equities will definitely help you fulfill your goals provided you are dedicated, disciplined, rebalance your portfolio and run a long course. Read More...
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₹"Our favorite holding period is forever."₹
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#peterlynch Read More...
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₹"Our favorite holding period is forever."₹
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₹"Our favorite holding period is forever."₹
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₹"Our favorite holding period is forever."₹
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How Compounding works in Mutual Fund:- In growth funds the concept of compounding works notionally. They invest in stocks and keep selling and buying and any profits go towards adding the value of units and losses deduct its value. Suppose a fund starts with the corpus of Rs. 100 crore and after doing miscellaneous transactions its value adds Rs. 15 crore in profits after adjusting expenses and losses, and its corpus grows up to Rs. 115 crore (presuming no fresh contribution or redemption) then the NAV of the underlying units would appreciate as much, that is by 15%. If you had purchased a unit at Rs. 10 then its NAV will grow to Rs 11.5. If you redeem your return will be 15%. Suppose you keep the units and these double in NAV in 6 years then your return will be 12% compounded. If the value doubles in 5 years that is equivalent to 15% return. If it doubles in 4 years the return will be equivalent to 18% compounded. Read More...
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nicely put Read More...
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₹"Our favorite holding period is forever."₹
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