Quick Updates

18 Jan 2016 – Equity Returns Demystified

If you had invested a lakh in Sensex in 1990, you would have made 33 times or Rs. 33 Lakhs. i.e between 1990 and 2015 the returns work out to 14.5% in 26 years. I am sure that you are aware that Active Equity Mutual Funds beat the markets by 3-5% (Alpha created by Fund Managers). Companies in Sensex will also reward the investors with Dividends and if we factor that, Sensex returns is about 16% CAGR. If you look at the returns pattern, you will be surprised:

Did not participate in best 10 days – Return is 12 times or about 10% CAGR

Did not participate in best 20 days – Return is 6 times or about 7% CAGR

Did not participate in best 30 days -Return is 3 times or about 5% CAGR

Did not participate in 40 best days – Return is 2 times or about 2.5% CAGR

You can clearly see that Equity returns are not linear and no one can predict the best days to participate. The opportunity to earn good returns can be achieved only by staying/participating in the market for a long tenure

14 Jan 2016 – Cut in Rates of Government backed Instruments

Government plans to cut Interest Rates on PPF, Post office deposits etc in the next few days. Banks were citing that they are unable to pass on the benefit of RBIs rate cut from 8% to 6,75% as their competing products like PPF, Postal deposit are providing higher rates of interest

26 Dec 2015 – PenguWIN is our approved trademark

PenguWIN Trademark Approved 26 Dec 2015