When making investment decisions, most investors want to know how much returns they will get from their investments. While returns are obviously important, another important factor, liquidity, is not often given the importance it deserves. As a result some investors find themselves in frustrating and financially distressful situations with regards to their investments. Let us.
The stock market has surged in the last few days with the Nifty near its 52-week high. Nifty has gained nearly 6% in the last month but it has given negative returns over the last 6 months. The Nifty Midcap 100 Index has gained more than 8% in the last one month, but is down.
Sometimes we hear financial advisors saying that, this mutual fund will give 20% compounded annual returns, if held for the next 10 years. However, on what basis are they making this projection? and the answer that we often get is that, it is based on their “experience”. In the first place of this two parts,.