Minimum Viable Knowledge in Investing

Investing Online

 

 

 Reading about technology startups, one sometimes comes across the term 'Minimum Viable Product', or MVP. This is defined as product which has been developed to the point where it just enough features to be used and tested by real users. If rightly designed, then applying the Pareto principle, it possibly has those 20 per cent of the features that satisfy 80 per cent of the needs.

 

This makes me wonder if there is an equivalent in terms of knowledge about investing. Is there a level of Minimum Viable Knowledge (MVK) about investing? Is there a set of MVK, which means that saver who has it will be fine and invest his or her money well?

 

I think there is and it has surprisingly few items on it. The biggest item in MVK would be an understanding of compound interest, which probably covers about 50 of the 80 percentage points required by the Pareto principle. The reason is that the biggest problem that Indian savers face is not that the more esoteric ones but that they don't start early enough. If they do, they don't save enough, and in most cases waste these years on investments that don't pay enough.

 

Here's the obligatory example. An investment of R1 lakh for 25 years at 10% return becomes R12 lakh. And if you invest a little late (for 20 years) and a little less (R80,000) and earn a little less (8%), you will earn R4 lakh instead of 12. One third! Those who understand how compounded earnings work never make this mistake. Down the years, there's a huge advantage for starting to invest at the age of 25 instead of 30. But then, who knew this at the age of 25? A small number does

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------