systematic investment plan (invest regularly)
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Systematic investment plan (invest regularly)TRANSCRIPT
SSystematic ystematic IInvestment nvestment PPlanlan
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Part - 3Part - 3
SStart early….tart early….
PPlan for the futurelan for the future
Hmmm… Ok… Hmmm… Ok… So how do I do So how do I do
Investment Investment Planning?Planning?
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IInvest regularlynvest regularly
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We saw in Part 2 how early savings help us for future plans with inflation adjusted returns.
Now let us check why Regular investment is important.
Rupee Cost Average:
• Total Amount Invested = Rs.120000
• Total No. of Units Purchased = 12409
• Average Price per unit = Rs.9.83
• If money is redeemed @ Rs.14 then the redemption value is Rs. 1,73,727 which is 45.44% (annualised)
MonthAmountInvested
Purchase NAV
No of Units Purchased
1 10000 10 10002 10000 9 11113 10000 8 12504 10000 9 11115 10000 10 10006 10000 11 9097 10000 12 8338 10000 10 10009 10000 8 125010 10000 9 111111 10000 10 100012 10000 12 833
TOTAL 120000 12409
Benefits of 'Rupee Cost Averaging’: As fixed sum is invested at regular intervals, more units are bought when the prices are low and less units when the prices are high. This brings down the average cost of units.
Invest Regularly…
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Rupee Cost Average:
• Total Amount Invested = Rs.120000
• Total No. of Units Purchased = 11310
• Average Price per unit = Rs.10.75
• If money is redeemed @ Rs.14 then the redemption value is Rs. 1,58,335 which is 32.40% (annualised)
MonthAmountInvested
Purchase NAV
No of Units Purchased
1 10000 10 10002 10000 13 7693 10000 12 8334 10000 9 11115 10000 10 10006 10000 11 9097 10000 12 8338 10000 10 10009 10000 11 90910 10000 9 111111 10000 10 100012 10000 12 833
TOTAL 120000 11310
Lets see one more example when Market is up and because of that NAV is also up during most of the time of investments.
This is the magic of Rupee Cost Averaging...
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Make it a HABIT to SAVE a certain sum of money every month,
It is very easy to spend WEALTH, but very difficult to SAVE.
INVEST your savings to make your money GROW.
Do not SAVE what is left after spending, but spend what is left after SAVINGS.
The good old grandmother theory still holds true.
“A penny saved is a penny earned”.
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“ Time in the market is more important than timing the market.”
- Warren Buffet
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