Comments on: How Inflation Eats away all your savings http://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html Financial Planning , Insurance , Mutual Funds , Investments Sat, 11 Feb 2012 14:23:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Manish Chauhanhttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-11047 Manish Chauhan Sun, 27 Jun 2010 06:32:33 +0000 http://www.jagoinvestor.com/?p=21#comment-11047 Phani a) 15% will not come by just buying and holding , Nifty at 20000 in 2020 may not happen . 15% return will be because its an assumption that you will make sure portfolio rebalancing is happening and you keep churning portfolio atleast in 1-2 yr to make sure you throw out junk and buy new funds which are better . A person who just buying equity and sits idle assuming that he will get 15% will be fool . Its not going to happen . Also better thing would be to assume 12-13% instead of 15% . 15% is on aggresive side . b) I would say inflation and Index are correlated but both of them are dependent on another third thing which is how economy is moving . c) Yes , the growth in next set of 15-20 yrs will be very different from last 15-20 yrs , in immediate term like 10-15% i see good growth because still india is on its way to become a developed nation and we have so much to grow . Manish Manish Phani

a) 15% will not come by just buying and holding , Nifty at 20000 in 2020 may not happen . 15% return will be because its an assumption that you will make sure portfolio rebalancing is happening and you keep churning portfolio atleast in 1-2 yr to make sure you throw out junk and buy new funds which are better . A person who just buying equity and sits idle assuming that he will get 15% will be fool . Its not going to happen . Also better thing would be to assume 12-13% instead of 15% . 15% is on aggresive side .

b) I would say inflation and Index are correlated but both of them are dependent on another third thing which is how economy is moving .

c) Yes , the growth in next set of 15-20 yrs will be very different from last 15-20 yrs , in immediate term like 10-15% i see good growth because still india is on its way to become a developed nation and we have so much to grow .

Manish

Manish

]]> By: Phanihttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-11046 Phani Sun, 27 Jun 2010 05:39:52 +0000 http://www.jagoinvestor.com/?p=21#comment-11046 Manish, I am a new reader. I have read most of your articles and learnt a lot. Your articles are really awesome. However a) In most of the articles you have assumed equity growth of 15%. In such a case, NIFTY has to reach 20,000 by 2020. Really will that be the case? b) Inflation is something related to demand/supply within India. So it might be very high in coming years. But equity as a whole is dependent on the entire world. What if inflation goes up high and market stays in the current range for next 4 to 5 years? This is because last year during recession, prices of basic commodities decreased in USA where in it increased highly in India. In general is there a relation between Indian Sensex and inflation? c) As per my understanding, all countries are living on lending money. Over past 10 years this was the case and this brought the economy growth everywhere. But now this has maxed out and the growth may not be the way it is in past 10 years. What is your idea on this? Manish,
I am a new reader. I have read most of your articles and learnt a lot. Your articles are really awesome. However
a) In most of the articles you have assumed equity growth of 15%. In such a case, NIFTY has to reach 20,000 by 2020. Really will that be the case?
b) Inflation is something related to demand/supply within India. So it might be very high in coming years. But equity as a whole is dependent on the entire world. What if inflation goes up high and market stays in the current range for next 4 to 5 years? This is because last year during recession, prices of basic commodities decreased in USA where in it increased highly in India. In general is there a relation between Indian Sensex and inflation?
c) As per my understanding, all countries are living on lending money. Over past 10 years this was the case and this brought the economy growth everywhere. But now this has maxed out and the growth may not be the way it is in past 10 years. What is your idea on this?

]]> By: 6 Steps of doing Retirement Planning by yourselfhttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-10257 6 Steps of doing Retirement Planning by yourself Fri, 04 Jun 2010 14:13:36 +0000 http://www.jagoinvestor.com/?p=21#comment-10257 [...] much will be average Inflation figure in coming [...] [...] much will be average Inflation figure in coming [...]

]]> By: How to find out Best Fixed Deposithttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-8637 How to find out Best Fixed Deposit Sun, 02 May 2010 16:39:23 +0000 http://www.jagoinvestor.com/?p=21#comment-8637 [...] will also tell you what will be your final profit after paying tax and what will be your gain after factoring in Inflation (based on your expectation of inflation percentage) [...] [...] will also tell you what will be your final profit after paying tax and what will be your gain after factoring in Inflation (based on your expectation of inflation percentage) [...]

]]> By: How to save for Child Education in 5 stepshttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-8548 How to save for Child Education in 5 steps Sat, 01 May 2010 07:55:17 +0000 http://www.jagoinvestor.com/?p=21#comment-8548 [...] child in today value. now you can jump to next step , but before that make sure you understand the effect of inflation on our Money . Here is another good article on [...] [...] child in today value. now you can jump to next step , but before that make sure you understand the effect of inflation on our Money . Here is another good article on [...]

]]> By: manishhttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-1588 manish Sat, 14 Nov 2009 21:34:31 +0000 http://www.jagoinvestor.com/?p=21#comment-1588 @Saurabh Well .. Gold is too much hyped these days .. Not that I suspect its return potential for next decade . But I feel that Gold can deliver good returns for next couple of years , but over 10 yrs of time frame Its return would not be more than 10% CAGR (fingers crossed) . But anyways .. The thing I can think of is to do a SIP on your own (invest per month on a fixed date) in Gold ETF's . Another alternative would be to divide your investment in Gold ETF's and Gold Mutual funds . What ever you do , just remember these points 1. Gold can not beat Equity in long term (If it does , c0nsider it as a once in a cenury thing) . 2. Historically (100+ yrs) GOLD returns have matched the Inflation rate ... So do you want to second guess that for next 10 yrs ? sure you can and you should if you have confidence and appropriate reason , Do you ? 3. Do not put more than 10% (max) in GOLD as an investment . GOLD is a hedging mechanism generally . Tell me !! . Manish @Saurabh

Well .. Gold is too much hyped these days .. Not that I suspect its return potential for next decade . But I feel that Gold can deliver good returns for next couple of years , but over 10 yrs of time frame Its return would not be more than 10% CAGR (fingers crossed) .

But anyways .. The thing I can think of is to do a SIP on your own (invest per month on a fixed date) in Gold ETF’s . Another alternative would be to divide your investment in Gold ETF’s and Gold Mutual funds .

What ever you do , just remember these points

1. Gold can not beat Equity in long term (If it does , c0nsider it as a once in a cenury thing) .
2. Historically (100+ yrs) GOLD returns have matched the Inflation rate … So do you want to second guess that for next 10 yrs ? sure you can and you should if you have confidence and appropriate reason , Do you ?
3. Do not put more than 10% (max) in GOLD as an investment . GOLD is a hedging mechanism generally .

Tell me !! .

Manish

]]> By: Saurabh Pandeyhttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-1587 Saurabh Pandey Sat, 14 Nov 2009 21:21:39 +0000 http://www.jagoinvestor.com/?p=21#comment-1587 Hi Manish Ji, I wanted to invest in gold for approx 10 yrs. so cna u please suggest that wht should be the strategy for such an investment for 28 yrs old. Thanx. Hi Manish Ji,
I wanted to invest in gold for approx 10 yrs. so cna u please suggest that wht should be the strategy for such an investment for 28 yrs old.

Thanx.

]]> By: How much Insurance Cover is Enough ?http://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-1554 How much Insurance Cover is Enough ? Wed, 11 Nov 2009 20:06:24 +0000 http://www.jagoinvestor.com/?p=21#comment-1554 [...] 10% per year now a days . You require 60 lacs after 12 yrs For Higher Education of your Children . Understand Inflation . Robert (quiet) : Hmm.. That’s something I didn’t think about . So I will need 60 lacs [...] [...] 10% per year now a days . You require 60 lacs after 12 yrs For Higher Education of your Children . Understand Inflation . Robert (quiet) : Hmm.. That’s something I didn’t think about . So I will need 60 lacs [...]

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/05/how-inflation-eats-away-all-your.html#comment-1270 Manish Chauhan Fri, 02 Oct 2009 17:34:09 +0000 http://www.jagoinvestor.com/?p=21#comment-1270 @Gurdial <br /><br />Yes , definately .. Real estate returns are second highest in long run after equity . So it makes sense in long run .<br /><br />Silver has been a better performer than GOLD in recent years , it can be an alternative to GOLD as investment . <br /><br />Manish @Gurdial

Yes , definately .. Real estate returns are second highest in long run after equity . So it makes sense in long run .

Silver has been a better performer than GOLD in recent years , it can be an alternative to GOLD as investment .

Manish

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