Mastering Investment: 5 Fundamental Rules to Know with Purnartha
In the world of investments, the abundance of options can often lead to confusion. With various investment strategies and choices available, it’s crucial to understand the fundamental rules that can guide you toward financial success. In this blog, we’ll explore the top 5 thumb rules of investing and how they can shape your investment journey with Purnartha’s expert guidance.
What Are Thumb Rules in Investing?
Thumb rules are simplified principles that provide practical guidance for making financial decisions. They are based on real-life experiences rather than complex calculations. Let’s delve into the top 5 Thumb Rules of Investing, keeping in mind how Purnartha’s services can enhance your investment experience.
- Rule of 72: Doubling Your Money
The Rule of 72 is a handy tool to estimate the time it takes for your investments to double based on the rate of return. To apply this rule, divide 72 by the annual interest/growth rate, and you’ll get the approximate number of years it takes to double your investment. Purnartha’s expert advisors can help you find the right investments with the potential to maximize this rule.
- Rule of 70: Understanding Inflation
The Rule of 70 helps you gauge how inflation can impact your wealth. It tells you how long it will take for your wealth to halve in value due to inflation. By dividing 70 by the current inflation rate, you can estimate the number of years it will take for your wealth to decrease by 50%. Purnartha’s investment advisory services can help you navigate inflation’s impact and plan your investments accordingly.
- 100 Minus Age Rule: Asset Allocation
The 100 Minus Age Rule is a simple method to determine the allocation of assets, such as equity and debt, in your portfolio. Subtract your age from 100 to find the percentage you should allocate to equities, with the remainder going into debt. Purnartha’s team can customize your investment strategy based on this rule, ensuring your portfolio aligns with your financial goals, risk tolerance, and overall portfolio management.
- Minimum 10% Investment Rule: Early Saving and Compounding
To harness the power of compounding and build wealth, it’s essential to start saving and investing early. The Minimum 10% Investment Rule advises investing at least 10% of your current income and increasing it by 10% each year. Purnartha’s investment advisory services can help you create a personalized investment plan, considering your specific financial situation and long-term investment goals.
- The 4% Withdrawal Rule: Retirement Discipline
The 4% Withdrawal Rule is designed to ensure that retirees can maintain a steady income stream throughout their retirement years. It suggests that you should not withdraw more than 4% of your retirement fund in one year. Purnartha’s experts can assist you in managing your investments during retirement, ensuring that your financial future remains secure.
While these thumb rules offer valuable insights, it’s essential to remember that they should not be blindly followed. Individual factors such as risk tolerance, financial goals, and investment horizon should also guide your decisions. A successful investment portfolio aligns with your unique objectives while considering your risk tolerance and time horizon. Purnartha is your trusted partner in achieving these financial objectives, providing expert guidance and tailored investment solutions.
With Purnartha, you can Manage your investments with a secure financial future.
So, what are you waiting for, analyze your finances and get ready to create your own portfolio today!