- What should I do with my Money?
An Investor has different asset classes to invest depending on his risk appetite, investment horizon and return expectations.
- What are all the different Asset Classes?
Almost all the investors are familiar with Fixed deposits offered by banks. Investor can also choose among Company deposits, Bonds, debentures, Mutual funds, Insurance, Stocks, Gold and Real estate for a diversified investment portfolio.
- How should I choose an asset class?
An investor should choose an asset class based on Risk & Return, Liquidity, Capital appreciation & Taxation. More Risk ,More Return is true for any asset class.
**Investment matrix**Asset Class Return Income Capital Appreciation Liquidity Taxation Fixed Deposit Yes - Interest No No Yes Gold / Real Estate No Yes Low Yes Stock / Mutual Funds Yes - Dividends Yes High Liquidity No LTCG - What are all the different Asset Classes?
Almost all the investors are familiar with Fixed deposits offered by banks. Investor can also choose among Company deposits, Bonds, debentures, Mutual funds, Insurance, Stocks, Gold and Real estate for a diversified investment portfolio.
**LTCG -**Long Term Capital Gains tax is not applicable, if the investment period is for more than a year**STCG -**Short Term Capital Gains tax will be applicable, if the investment period is less than a year**Let's learn more about all these asset classed in detail.**

- What are all the different Asset Classes?
Almost all the investors are familiar with Fixed deposits offered by banks. Investor can also choose among Company deposits, Bonds, debentures, Mutual funds, Insurance, Stocks, Gold and Real estate for a diversified investment portfolio.
- How much you should save per month to achieve a specific target figure?
Just multiply your target figure with the following and you will get the monthly savings. For eg. to achieve a target figure of Rs.10 lacs over 15 years at 10% interest you should save Rs.2410 per month. (10X241)
Period 8% 9% 10%(Per

hundred)11% 12% 10 Years 0.546 0.516 0.488 0.460 0.434 12 Years 0.415 0.388 0.361 0.336 0.313 15 Years 0.288 0.264 0.241 0.219 0.200 18 Years 0.208 0.186 0.166 0.148 0.131 20 Years 0.169 0.149 0.131 0.115 0.101 - How much you should invest (lump sum) to achieve a specific target figure?
Just multiply your target figure with the following and you will arrive at the amount required to be invested For eg. to achieve a target figure of Rs.10 lacs over 8 years at 10% interest you should invest Rs .4,53,000 at present. (10,00,000x0.453)
Period 8% 9% 10% 11% 12% 5 Years 0.672 0.640 0.610 0.581 0.553 6 Years 0.621 0.586 0.552 0.521 0.491 7 Years 0.574 0.536 0.500 0.467 0.437 8 Years 0.530 0.490 0.453 0.419 0.388 9 Years 0.490 0.448 0.411 0.376 0.345 10 Years 0.452 0.410 0.372 0.337 0.306 - How much does an investment (lump sum) grow?
Just multiply the investment amount with the figure and you will arrive at the maturity value at the end of the specific period. For eg. if you invest RS.1,00,000 for a period of 7 years at 10% interest you will get Rs.1,99,650 (1,00,000 x 1.996).
Period 8% 9% 10% 11% 12% 5 Years 1.485 1.560 1.638 1.720 1.806 6 Years 1.608 1.705 1.808 1.917 2.032 7 Years 1.741 1.864 1.996 2.137 2.287 8 Years 1.884 2.038 2.203 2.382 2.575 9 Years 2.039 2.227 2.432 2.655 2.898 10 Years 2.208 2.435 2.685 2.959 3.262 - How does my monthly savings grow at the end of any specific period?
Just multiply your monthly savings with the following figures and you will arrive at the maturity value of your savings at the end of a specific period. For eg. if you invest Rs.10,000 per month for a period of 12 years at 9% interest the maturity value of your investment will be Rs.25,77,100.
Period 8% 9% 10% 11% 12% 10 Years 182.94 193.51 204.84 216.99 230.03 12 Years 240.50 257.71 276.43 296.83 319.06 15 Years 346.03 378.40 414.47 454.68 459.58 18 Years 480.08 536.35 600.56 673.93 757.86 20 Years 589.02 667.88 759.36 865.63 989.25 - How to calculate the EMI for the housing loan/ vehicle loan?
Just multiply the loan amount (in lacs) with the following figures and you will arrive at the EMI (equated monthly instalment) payable for the specific period at a specified rate of interest. For example, if you have borrowed RS.10 lacs for a period of 20 years at 10% interest, the EMI on your borrowings will be 1O X 965 = Rs.9650 per month for a period of 20 years.
Period 9% 10% 11% 12% 3 Years 3180 3227 3274 3321 5 Years 2076 2125 2174 2224 8 Years 1465 1517 1571 1625 10 Years 1267 1322 1378 1435 15 Years 1014 1075 1137 1200 20 Years 900 965 1032 1101 25 Years 839 909 980 1054 30 Years 805 878 952 1028 - How to calculate my eligible loan amount for the EMI that I can afford?
Just multiply your EMI capacity with the following figures and you will arrive at the eligible loan(principal amount) applicable for the specific period at the specified rate of interest. For example, if you are aged 40 and your EMI capacity is RS.10,000 per month for a period of15years, you can borrow up to Rs.8.33 lacs at 12% interest or Rs.9.85 lacs at 9%interest.
Age Max.Eligible

Loan Period9% 10% 11% 12% 57 3 years 31.446 30.991 30.544 30.107 55 5 years 48.173 47.065 45.993 44.955 52 8 years 68.258 65.701 63.660 61.527 50 10 years 78.941 75.671 72.595 69.700 45 15 years 98.593 93.057 87.981 83.321 40 20 years 111.145 103.624 96.881 90.819 35 25 years 119.161 110.047 102.029 94.946 30 30 years 124.281 113.950 105.006 97.218 - Planning for childrens education, marriage etc:
Let us assume that you want to give your 3 year old son the best education. You can plan for a 18 year savings cum insurance plan by saving a nominal amount every month. The following table will help you to calculate the monthly savings to be made to meet the future needs of children assuming the present day cost, expected inflation at4% and return on investment ranging between 8% to 10% and no savings for the purpose so far.

Just multiply your present day cost with the following and you will arrive at the required monthly savings. For example, if the present cost of education is Rs.4,00,000 and you opt for a 18 year savings plan, you must save between Rs.1348 to Rs.1688 per month assuming the interest rate on your savings are between 8% to 10%.. A savings cum insurance plan of Rs.1500 to Rs.2000 per month will give you a total solution.Present Age

Of the ChildSavings Period 8% 9% 10% 15-16 5 Years 1.655 1.613 1.571 13 - 14 8 years 1.022 0.978 0.936 11- 12 10 years 0.809 0.765 0.723 8 - 10 12 years 0.665 0.621 0.579 5 - 7 15 years 0.520 0.476 0.435 2 - 4 18 years 0.422 0.378 0.337 0 - 2 20 years 0.372 0.328 0.289 - Planning for Life After Retirement
Let us assume that you want to retire at 60 - i.e. after about 20 years from now. You can plan for a lifetime pension plan by saving a nominal amount every month. The following table will help you to calculate the monthly savings to be made to maintain the same standard of living even after retirement assuming the present day cost, expected inflation at4% and return on investment ranging between 8% to 10% and no savings for the purpose so far.

Just multiply your present day cost with the following and you will arrive at the required monthly savings. For example, if the present day cost is Rs.10,000 per month and you opt for a 20 year savings, you must save between RS.4320(10000X0.432) to 5580( 10000X0.558) per month assuming the interest rate on your savings are between 8% to 10%. A pension cum insurance plan of Rs 5000 per month will give you a total solution.Present Age

Of the ChildSavings Period 8% 9% 10% 30 Years 30 Years 0.326 0.265 0.215 35 Years 25 years 0.420 0.356 0.301 40 Years 20 Years 0.558 0.492 0.432 45 Years 15 years 0.780 0.714 0.652 50 Years 10 Years 1.214 1.147 1.083 55 Years 5 years 2.483 2.420 2.356

In other words, you can make your life simple and still enjoyable with proper planning and prudent allocation of available resources.

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