Gautam Singh wanted to hang up his boots by the age of 50 and started planning for his early retirement 10 years ahead. The corporate sector employee set out on his journey towards financial independence with monthly SIP investments of ₹65,000, as he aimed to accumulate ₹1.5 crores over the next 10 years. He also wished to pursue some of his passions after retirement and adjusted the fund requirements accordingly.
The investment portfolio was constructed with mutual fund schemes in the large-cap, large-and mid-cap, multi-cap, and mid-cap categories. Gautam was comfortable with intermittent volatility and aimed at wealth creation towards retirement goals. While he was prepared for the short-term volatility, he was not prepared for the sharp corrections in the equity markets between March and April 2020, after the Covid-19 outbreak.
Panic started gripping the equity markets during the last week of March 2020 in anticipation that the whole economy will come to a standstill. As a result, the investment portfolio was down by around 23 per cent in the first week of April, from around 9 per cent annualized returns for the portfolio till January 2020. The annualized returns for the investment portfolio had fallen sharply by 16 per cent with around three years of investment.
Gautam was not happy with the performance even during the pre-Covid times, with lower than expected returns till January 2020. Further, when the market fell like a deck of cards in the first week of April 2020, he started getting impatient and was on the verge of losing confidence and trust from the equity markets. With the financial goal approaching, he was getting nervous about his aspirational early retirement.
この記事は Outlook Money の June 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Outlook Money の June 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
