A Picture is worth thousand words. So today I thought to share few charts that are really important for you to understand. Let me share one more thing that most of the charts that you find on TFL are out of my own research. And sometime it not takes hours but few days to make them. Hope you will appreciate them by giving your few minutes.
Long term investment chart – this is 30 years data of various investments & it compares them with few expenses. We can clearly see that in long term equity is a clear winner – difference is so huge that it can’t be ignored.Related Article: What is Equity? Understand its right meaning to reap the benefit
Negative Debt Returns Chart: Debt creates an illusion of safety but in long term safety is preservation of purchasing power. But here debt products fail. Most of the time debt products give negative return – if we consider inflation & tax.Why Fixed Deposits & Debt Returns will always give negative returns
Chart why people lose money in equity – I always keep saying that Investing is not a number game but a mind game. There will always be a big gap between Investor returns & Investment Returns. And this graph clearly shows how greed & fear rule our mind. It shows that when market start rising people pore more money & vice versa.Behave Yourself… Financially
Chart Magic of SIP – Systematic Investment Plan(SIP) has become a buzz word now a days but I am sure people still don’t understand it in a real sense. SIP is a great tool which can help you in achieving your financial goals. For some, last 3 years were the worst part of their investment life but for SIP investors it was not less a dream that came true. Chart Shows market moved in a semi circle & investor made 27% CAGR return.Systematic Investment Plan(SIP) – Complete Guide Do you really understand SIP
India Growth Story Chart – You will never have a faith in equity if you will not try to understand relation between stock markets & growth of economy. Stock Market is barometer of economic growth. If you don’t believe that India will grow & become a bigger economy in coming years, better you should not invest in equity markets. This graph is part of famous BRIC report by Goldman sach that says India will be 3rd largest economy around 2030.India will rule the world
Invest in Equity and you will reap the benefits of Indian growth story. In the last 30 years, India’s GDP has grown close to 6% and now we are nearing 9-10% GDP growth target.Also Check: 5 Funny Investment & Insurance Cartoons
Mandhupam added a comment – which gives better direction to this article. 🙂
Simplest explanation to the 5 basic questions, which bother an investor. And these are:
1) Where to invest? (India)
2) Which asset to invest? (Equity)
3) How to invest? (SIP)
4) What minimum return to aim? (Alteast above inflation)
5) When to invest? (Always, with no timing)
Must share your views & ideas on charts – I may try to build few out of them.