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Do not forecast your future by looking at the present. Irrespective of what you have you can always go broke and bankrupt . - Read how the destiny over took the who's who of the 1920's
The Benefits of starting early in the Investing game
Equities perform best when compared to other savings Instruments like Bank Deposits, NSC, and Post Office Savings etc.
The BSE Sensex - There is a 100% probability of making money over the long term
Equity investing - A tax paradise.
Save tax and destroy wealth by buying R.B.I relief Bonds investing in Insurance related products and by contributing to P.F .
Your car is your greatest wealth destroyer. Buy it only if you need it. It costs Rs 636 per day to maintain a car - Understand why one is more then enough

Do not forecast your future by looking at the present!

In 1923 a meeting held in Chicago was attended by Charles Schwa , head of the world's largest independent steel company, Samuel Insull President of the world's largest utility, Howard Hopson head of the largest Gas company, Ivar Krueger President of the International Match co, one of the world's largest companies that time, Leon Frazier president of the Bank of International settlements, Richard Whitney president of the NYSE, Arthur Cotton and Jesse Livermore two of the world's largest speculators and Albert Fall member of President Harding's cabinet.

Twenty-Five years later Nine of them ended as follows:

Schwab : Died penniless having lived for over five years on borrowed money

Insull : Died Bankrupt in a foreign land

Krueger and Cotton : Died bankrupt

Hopson : Went insane

Whitney and Albert Fall : Just released from prison

Fraser and Livermore: Committed suicide

The Benefits of starting early in the Investing game. The first Individual saves only till he is 28 years old while the second starts to save from that age. By the time they retire the first is 250% ahead of the other inspite of having saved for only 8 years.

Basis of computation	Mr. Arnab Chatterjee	Mr. Sunny Agarwal
Starts Savings	21 years	28 years
Stops savings	28 years	60 years
Amount of savings per year	Rs 60,000	Rs 60,000
No. Of years saved	8	33
Interest compounds at	15%	15%
At the age of 28 years	Rs 823,609	Rs 60,000
At the age of 40 years	Rs 44.06 lacs	Rs 20.61 lacs
At the age of 50 years	Rs 1.78 crores	Rs 95.56 lacs
At the age of 60 years	Rs 7.21 crores	Rs 3.98 crores
If Mr. Agarwal saves Rs 1,08,475 then only his wealth would equal that of Mr.Chatterjee. Therefore if you start saving at a later date you are at a terrible disadvantage to the person who has started earlier then you.

An Investment of Rs 100,000 made 27 years ago into the BSE index would have grown to more then Rs 90.00 lacs as on December 31 st 2005

Options	Lock-in Period	Annualized Returns	Returns post inflation of 5%	Remarks
Equities - The BSE Index	Not Applicable	18.28% since 1979	14.20%	Dividend and Long- term capital gains are tax-free . All the major stock indices of the world have outperformed the various asset classes.
PPF	6 Years*	8%	3%	Max investment capped at Rs.70,000. It is a Fixed Return instrument
NSC	6 Years	8%	3%	Returns are fully taxable, Fixed return instrument
Bank Fixed Deposit	1 – 3 Years (SBI Fixed Deposit)	5.50%	0.5%	Interest is taxable depending on the income level.
RBI Savings Bonds	6 Years	8% Taxable	3% Taxable	NRI's cannot invest Premature encashment not allowed
NRE Deposits (Rupee Deposits)	1 year to less than 2 years (SBI NRE Fixed Deposit)	5.20%	0.2%	Interest is tax free
Post Office Time Deposits	6 months	6.50% (Rate for 2 years)	1.5%	No premature closure before 6 months, No interest is paid if closed before expiry of 1 year

The risk associated with stock investing declines gradually with increase in holding period.

S. No.	Year	Sensex	Rolling 1 year growth	Rolling 3 year growth	Rolling 5 year growth	Rolling 7 year growth	Rolling 10 year growth	Rolling 15 year growth
0	1979	100
1	1980	129	28.6%
2	1981	173	34.9%
3	1982	218	25.5%	29.6%
4	1983	212	-2.8%	18.0%
5	1984	245	16.0%	12.3%	19.7%
6	1985	354	44.2%	17.6%	22.4%
7	1986	574	62.2%	39.5%	27.0%	28.4%
8	1987	510	-11.1%	27.7%	18.6%	21.8%
9	1988	398	-21.9%	4.0%	13.5%	12.6%
10	1989	714	79.1%	7.5%	23.8%	18.5%	21.7%
11	1990	781	9.5%	15.2%	17.2%	20.5%	19.8%
12	1991	1168	49.5%	43.1%	15.3%	25.0%	21.0%
131	1992	4285	266.9%	81.8%	53.0%	42.8%	34.7%
14	1993	2281	-46.8%	42.9%	41.8%	21.8%	26.8%
15	1994	3779	65.7%	47.9%	38.6%	33.1%	33.5%	27.4%
16	1995	3261	-13.7%	-8.7%	33.1%	35.0%	24.9%	24.1%
17	1996	3367	3.2%	13.9%	23.6%	24.8%	19.3%	21.9%
18	1997	3361	-0.2%	-3.8%	-4.7%	23.2%	20.7%	20.0%
19	1998	3893	15.8%	6.1%	11.3%	18.8%	25.6%	21.4%
20	1999	3740	-3.9%	3.6%	-0.2%	-1.9%	18.0%	19.9%
21	2000	5001	33.7%	14.2%	8.9%	11.9%	20.4%	19.3%
22	2001	3604	-27.9%	-2.5%	1.4%	-2.1%	11.9%	13.0%
23	2002	3469	-3.7%	-2.5%	0.6%	2.9%	-2.1%	13.6%
24	2003	3049	-12.1%	-15.2%	-4.8%	-1.41%	2.9%	14.5%
25	2004	5591	83.4%	15.8%	8.4%	7.5%	4.0%	14.7%
26	2005	6492	16.1%	23.2%	5.4%	7.6%	7.1%	15.2%

Probability of loss			10/26	5/24	3/22	3/20	1/17	0/12
Maximum Return			266.9%	81.8%	53%	42%	34.7%	27.4%
Minimum Return			-46.8%	15.2%	-4.6%	-1.9%	-2.1%	13%

EQUITIES – A TAX PARADISE

If you sell your investment in less than 12 months (short term), you pay 10% tax

If you sell your investment in more than 12 months (long term), you do not pay any tax

And even the Dividends are TAX FREE!

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