Tag Archives: equities

Thursday Trivia ~ Commandments of Super Investor Mohnish Pabrai

Last week we had the pleasure of listening to Mohnish Pabrai, the shameless cloner of Warren Buffet at the Morningstar Conference. He started his investment journey after 30 years of age with a little over $ 1 million in early 2000s and now is worth above $ 100 million.

Reading this, many investors would feel that he atleast had a $ 1 million to start with. However, this can also be viewed as he made an investment return of 100 times through his focus and dedication. Another view can be that since he was an active investor, he could make such a return. Agreed. However, being a passive investor – if we can grow our money better than a fixed deposit or a LIC, it would be a good proposition. I suppose.

Mohnish shared his 10 commandments which were more directed towards fund / asset managers, not all of them would be useful to our readers who are passive investors. Hence, we have identified 4 commandments which would be useful to our readers.


Commandment #1: Thou shall be singularly focused like Arjuna.

As investors, we control our process of investing. Returns generated by stock market is not in our hands. Yet, most of our focus is to time the market and see if get that 1% extra than our colleagues at work have generated. It feels nice to take a little risk sometimes.

But is it really worth it? Does it always play like that?

Losing out on our investment discipline and timing the market has often generated loss than profit. Nobody can predict the market; they simply have their own theories. Some work, most don’t. Therefore, while opting for a goal based investments, an investor should focus on his process of systematic investment plans (SIP) rather than acting on an immediate tip provided by someone just to make that extra buck.


Commandment #2: Though shall never short.

Mohnish made a very interesting point here. He said, the upside or maximum returns to be generated while shorting a stock (selling first, buying later – when it’s felt that price of the company will fall) is merely 100% or double. However, the downside or maximum loss is unlimited.

What? Why? How?

Suppose there is a Company A which has delivered poor results. Hence, the primary feeling in the stock market is that the price will fall. Company A has a price of Rs. 10 at the moment. Now if a trader decides to short this Company by putting Rs. 1,000. He simply sells the stock of Company A at Rs. 10. Now, when the price goes to Rs. 5, he would have made 50% returns and if the price touches 0, the trader would have made 100%. Logic of stock market states that price cannot go below 0. So the maximum returns generated by the trader would be Rs. 1,000 on his previous investment of Rs. 1,000. That’s 100% returns.

Now the TWIST!!!

Now if by any chance Mr. Market feels that Company A, may have delivered poor results right now but it will deliver superior results henceforth and decides to raise the price of its stock. Our trader friend here would be for a shock. At Rs. 15, trader would have made a loss of 50% and at Rs. 20, he would lose his entire capital. Now here comes the scary part. Logic says, price cannot go below 0 but it can go up above 20 right?

So right from Rs. 20, when the price increases – our trader friend would have to arrange money from some other source of income as his initial capital of Rs. 1,000 would have been wiped out anyways.

This is one of the reasons we always hear in our social conversations – do you know Mr. X played in the stock market and has now sold his 5 BHK and shifted to 1 BHK? Now is this the fault of stock market or trader?


Commandment #3: Though shall always have a rope to climb out of the deepest well.

This commandment may have a different meaning for different people. For us, it simply means – Asset Allocation. Never invest your entire corpus into high risk equity funds in lieu of future high returns. Diversifying our investments into different asset classes such as equity, debt, real estate and gold results into sound sleep even during stock market corrections. However, an investor tends to unfollow his / her discipline when markets have shown a stellar past performance.

Let’s take an example of recent run up in the market and resulting in a fall. Throughout 2016 and 2017, Sensex and Nifty only inched higher. Because of the recent returns, many investors took their money out of fixed deposits / debt mutual funds to invest into risky mutual funds. Some investors started buying shares of companies based on very little information couples with extremely high conviction – obviously because it was a tip.

Nifty after touching a high of 11,700 has now come down to 10,000 levels. A fall of 17% in a matter of days leaving many investors wondering for the next 2008 crisis. Rather than boasting about their investment returns, they are now asking – what do you think is the bottom? Let some time go, this bottom phishing will also not work. Why? Because they are not disciplined, they are in a state of panic and trying to time the market. And that never works!


Commandment #4: Thou shall never be Leveraged. Neither a lender a borrower be.

Many investors tend to take a loan against their own shares / mutual funds to invest more in the stock market. This behaviour is often triggered by high returns generated and overconfidence of the investor to make quick money in no time.

Or when an investor watches their neighbor doing very well and decides to offer him some money to be invested in the stock market at unreasonably high monthly returns. This often happens in the real estate business. Many real estate players promise a 40% yearly interest and after a year are nowhere to be found.

Both of these habits of leverage result in bad outcomes. It poses unnecessary risk to be undertaken to achieve those investment returns. In short, it’s just impossible.

Hence, at Cirlce Wealth Advisors we don’t encourage trading the stock market. Investments with long term horizon, average returns and low risk can make an investor super rich. Compound interest works wonders for those who believe in it and run the course.

– Jinay Savla

Thursday Trivia ~ Fake Notes, Are you detecting them?

‘What! How can you say this note is fake?’ shouted an angry customer at a bank. ‘We have done nothing wrong, don’t you guys get it. Every penny is so important for us and you think we deal in fake currency?’, the customer was trying to catch a breath.

‘We are extremely sorry madam, but we will have to impound this Rs. 2,000 note. Do you remember who gave you this note?’ replied the bank executive.

‘How can you expect me to know that. I deal with so many people everyday, right from my household expenses to office expenses. I had some savings left, so wanted to deposit with the bank. But now it feels like I have done something wrong.’ cried the customer while others looked at her with compassion.

Upon hearing this, calmly bank executive took the note and stamped it – ‘counterfeit note’. Now it cannot be used as a legal tender.

‘You can’t catch the big guys who loot thousands of crores of rupees. Just because we are small, you will punish us.’ customer could not take it anymore and stormed out of the bank.

Wouldn’t we also behave in a similar emotion if such an event took place in our life? A question we must ponder upon. Hence, this trivia is dedicated to detect the authenticity of those new Rs. 500 and Rs. 2,000 notes in your wallet.

The notes are freshly printed during the phase of demonetisation. Hence, it doesn’t cross our brains to look at it with a different intent. But the truth is far from what we know.

The government in July 2017 had informed the parliament that fake currency having a face-value of over Rs 11.23 crore was detected in 29 states post demonetisation. Also, Reserve Bank of India (RBI) in its latest annual report said that during 2016-17, 762,072 pieces of counterfeit notes were detected in the banking system, of which 95.7 percent were found by commercial banks. This was 20.4 percent higher than what was detected in the previous year.

Do you still think, there is no chance of a fake note in your wallet?

Let’s first look at RBI Guidelines regarding fake currency.

Bank Counter

Usually, while we deposit our cash with bank they check for authenticity of those notes. If at that point, it is established that a particular note or series of notes are fake, then the amount will not be credited to the customer’s account. Also, the note will not be returned. Infact, the bank will be penalised, if it returns the very note back to their customer. RBI takes this very seriously, otherwise it will be a complete failure on their part to curb fake currency from the system. This results in a total loss for the customer.

After impounding, bank has to issue an acknowledgement of the transaction which has to be signed by the cashier and the customer who submitted that very note. Even if the customer refuses to sign, the receipt must be issued.

The note will then be stamped as ‘counterfeit note’ and will be recorded in bank registers. These fake notes are then sent to police for further investigation. Also, please note that if the customer holds more than 5 fake notes, then the bank has to file a FIR for investigation.


RBI has instructed banks to maintain adequate safeguards and checks before loading notes into ATM machine. Failure to do so, will be considered an attempt to circulate fake notes by the banks.

Yet, if you are out of luck and get a fake note from the ATM machine then unfortunately can’t be much done. Surprisingly, no existing guidelines from RBI are in place for the customer to claim new notes in return to the fake notes received from ATM. However, you can try a few things. Hold that particular fake note in the face of CCTV camera and see to it that serial number of the note gets properly captured, register the complaint with the station guard. Simultaneously, raise a complaint with bank, RBI and police. If during the investigation, it is established about the nature of note being fake then you will stand a fair chance to receive compensation.

It’s important to be vigilant all the time, as the exchange of fake notes can hurt our time and wallet both simultaneously. A way to avoid all this hassle is to educate yourself of the security features of the notes.

Rs. 2,000 notes

  • RBI has introduced newly designed bank notes as a part of it’s Mahatma Gandhi (New) Series.
  • It has motif of Mangalyaan on the reverse.
  • Base colour of the note is Magenta.
  • Size of the new note is 66 mm x 166 mm

For complete safety features of the note, please click here. (link embedded)

Rs. 500 notes

  • RBI has introduced newly designed bank notes as a part of it’s Mahatma Gandhi (New) Series.
  • These notes are different in colour, size, theme, location of security features and design elements from it’s predecessor.
  • It has an image of Red Fort on the reverse.
  • Base colour is stone grey.
  • Size of the new note is 66 mm x 150 mm

For complete safety features of the note, please click here. (link embedded)

Rs. 200 notes

  • RBI has introduced newly designed bank notes as a part of it’s Mahatma Gandhi (New) Series.
  • Motif of Sanchi Stupa on the reverse.
  • Size of the new note is 66 mm x 146 mm

For complete safety features of the note, please click here. (link embedded)

Rs. 50 notes

  • RBI has introduced newly designed bank notes as a part of it’s Mahatma Gandhi (New) Series.
  • Motif of Hampi with Chariot on the reverse.
  • Size of the new note is 66 mm x 135 mm

For complete safety features of the note, please click here. (link embedded)

Disclaimer :

Please note, that we don’t intend to blame the government or any other authorities. The intention of the article for our reader is to be safe and secure.

– Jinay Savla

Thursday Trivia ~ Pros and Cons of holding an Investment Account in the name of Minor

“Why are you so worried?’ enquired Rajesh while getting up in the middle of the night. Naina was sitting near their newly furnished balcony with her laptop, coffee placed on the table. Her right hand placed over forehead clearly displaying some huge concern on her face. ‘Nothing really!’ replied Naina. However, it was not a very uncommon scenario as both of them were high flying professionals in their career and working through the night was a part of their life. But this time, something seemed different to Rajesh. He got up to see what Naina was working on and saw her staring at a wide excel sheet where numbers seemed to be dancing in themselves. A name flashed above all numbers – Aditya.

‘We spend so much money each month that we can’t even save for ourselves. Looking at our projections we won’t be able to provide an international education for him. I am trying to see where we can cut back on our expenses’ Naina said. ‘But we have already started investing in mutual funds from last many years’ countered Rajesh. ‘Yes, you can see those mutual funds becoming a BMW in our garage but that wouldn’t pay for Aditya’s education in future’ nagged Naina. Rajesh understood the silent message and called his friend Manish, a wealth manager for meeting them over the weekend.

‘I understand your situation. There is one way since Aditya is just 9 years old, you have an option to open an investment account his name. Both of you can contribute to that account every month and create that basket for his higher education.’ Manish suggested while sipping tea. ‘Investment in the name of a minor is possible?’ asked Naina. ‘Yes’ replied Manish calmly.

‘But you must look at both sides of the coin – ie. pros and cons of investing in the name of a minor.’ added Manish with a caution. ‘Most certainly’ replied Rajesh.


Wider Capital Base

‘How can create a wider capital base since no new money is introduced?’ asked Naina.

‘Perfect question. If your money is invested in 2 asset classes such as real estate and mutual funds, the base is comprised of 2 instruments. But when you buy gold, you have one more option to invest your money in the future. In the same way, by opening an investment account for Aditya, you give yourself an option to create a new basket. Slowly, when you will water this basket, you will see a wide base for your capital. This will not only help in reducing risk on your money but also serve as an allocation to different goals of your child when he grows up.’ added Manish.

Allocation towards a specific goal of child

‘Yes, we are already thinking about Aditya’s higher education and that’s precisely the reason why we want to start investing in his name.’ Rajesh said.

‘Absolutely, that’s a smart move to make. Why don’t you also start thinking about his marriage or invest for initial capital if he decides to start his own business? That way, you won’t have to wait for the last moment. Financial security will enable him to achieve more.

For that, you can start small. Create specific allocation of money towards each of his goals in such a way as to it compounds over time and helps you to save more in the later stages of your career. Retirement from a job is also an active truth that we all have to deal with’ Manish said with a smile.

Gift to Child

‘Would the transfer money be taxable in Aditya’s account?’ asked Naina.
Manish replied, ‘You can also show it as a gift to Aditya and since Gift Tax is no longer in force, it would not be considered for income tax purposes in the hands of your son. On a lighter note, it makes a lot more sense to gift him a strong future.’

Clubbing provisions

‘But would not be clubbed under my or Naina’s account for tax purposes?’ Rajesh asked while looking at Naina.

‘No. The transfer in the form of gift would not be considered as income in the hands of Aditya. Hence, he won’t be subject to tax on the same. However, any income generated from those specific assets would be subject to tax.

For example, you decided to invest his money in mutual funds and for some reason, decided to sell those mutual funds at a profit before the end of year 1. The short term capital gains arising from the sale of mutual funds will be clubbed with either your Naina’s account upon your decision.

Hence, taxation on different asset classes will be the same irrespective of a major or minor. Once again, it’s the income from the asset rather than merely your transfer which would be subject to tax.’ Manish said.

Flexibility for use of money reduces

‘Rajesh you will not be able to use that money to buy your Mercedes, remember that.’ winked Naina.

Manish smiled and said, ‘Yes, you can wish to use that money but then again you will have to go through the pain of taxation and transfer of that money. So flexibility to use this money will be reduced and bring about a strict discipline to stick to the goal allocated towards Aditya.’

Access to money is lost once child attains majority

‘Last question, when Aditya becomes 18 years old, how will the account operate?’ asked Rajesh.

‘Typically, an investment made in the name of a minor cannot be operated by the guardian once the minor becomes a major. Once Aditya will attain majority status, he will have to apply for a change of status in the investment. All the investment formalities such as PAN and KYC will have to be complied with.

Also, once Aditya is major, then you will lose access to that money. Now he will decide what he wants to do with it. Your instructions to the bank or investment account will hold no value. I am sure, Aditya will not misuse that money but it’s better to be vigilant about it and work accordingly at it.’ Manish replied to Rajesh.

Upon listening to the conversation, Naina handed over the excel sheet and along with it the concern of Aditya’s future to Manish and sipped a coffee with great satisfaction. Rajesh also now was happy to see Naina relaxed and thanked Manish for the same.

– Jinay Savla

Thursday Trivia ~ Where are the stock markets headed?

It’s a Saturday evening, as a thumb rule Meera’s kitchen is on a holiday. Mahesh has already planned the evening with his school friend. As they are heading towards the restaurant, Mahesh is excited by the possibility of making investment in the stock markets. He told Meera, a story about his colleague who recently went on a vacation by redeeming his mutual fund investments.

How’s it even possible?, aren’t they supposed to be subject to market risk or something?’ enquired Meera. Mahesh with a smile on his face said, he has asked Rohit, school friend and now wealth manager to meet them at dinner. ‘You’ve become smart off lately’, chided Meera.

As dinner progressed, Mahesh asked ‘Rohit, markets seem to be booming, you must be making a lot of money.’ Rohit was not surprised as he has been listening to such conversations since quite some time now. ‘Mahesh, that’s always the case. People will always want to bet on a horse that won last 2 races. Same is the case with stock markets’ calmly Rohit replied. Meera with a twinkle in her eye remarked, ‘even Mahesh wants that horse which has won last 2 races.’ Three of them erupted in laughter.

Rohit on understanding Mahesh wanted to start investing in the stock markets, highlighted a few points which he needs to consider before starting the journey. ‘While starting your investment journey, don’t just get carried away by rewards. First try and understand where the market is and it’s risks at every level’, Rohit said.

Businesses are cyclical

‘After the crash of 2008, nobody ever imagined that markets would be back to all time high levels again. The atmosphere was so negative that we were considering ourselves lucky to have never invested our money. In fact, we used to hear horror stories of people who lost a lot of money’ remarked Mahesh.

“Exactly, that’s because businesses go through their cycles. Sometimes, a particular industry is in demand and when the peak is reached, it starts to fade away. At that time, a new industry is born. Think about it, 10 years ago, did we ever think that we would meet again by connecting through a social networking website. It would have been so hard otherwise.

As businesses have their ups and downs, so does our investments in those businesses made through markets go through a very similar roller coaster ride,’ replied Rohit.

An extremely positive environment

‘I am shocked to see so much positivity around. Even our neighbours are now talking about mutual funds all the time. Just see how geo-politically much better placed than most other countries.’ Meera replied with a hint of joining the conversation too.

‘Yes, the environment is extremely positive. Media has been speaking about India’s future prospects with some awe. Does that mean, even our markets will also perform the same way in future? Or think about it, has anyone been able to predict the future?’ This question from Rohit, put Mahesh in a deep thinking mode.

Early success

‘Isn’t trends of past an indicator of future success? I mean, just look at my colleague at office for an instance, in last three years he has made a decent return on his investments. We call him the wizard of investing, he won’t need to even work for a salary after a couple of years it seems.’ Mahesh tried to make his point.

‘Wow, that’s wonderful. So what were you doing three – five years ago? There are a lot of people who have made a decent return on their investment in the past. Same was the case from 2003-2007. But then 2008, did happen.

It’s called hindsight bias. Just because something has performed in the past, we think it will perform each time. Remember the horse story. There is no denial of markets doing good in last few years but would it perform the same way? A question we need to ask ourselves before starting the journey.’ Rohit seemed stern this time.

Over supply of money 

‘Rohit, so much money is going into markets each month. Do this businesses really need that kind of money right now? Would it not result in too much money chasing too few companies? Would that not result in eventual over confidence of businesses to perform?’ Meera, a finance student finally revolted.

‘Yes Meera. You are absolutely right. Suppose, there is only one horse who is consistently winning, everyone would want to bet their money on the same. You a finance student would understand, for horse winning the race, that much money is not required. It just needs to be healthy and participate in the race with a damn good jockey.

Suppose, jockey gets too overconfident about their odds of winning. Then there is a fair chance of horse not being able to win. Same applies to stock markets, if these businesses get money more than they require, will they be able to utilise it appropriately? Even if your answer is yes, does it mean that businesses will start earning a lot just because it’s getting more money through markets?’ Rohit smartly put both of them into one more dilemma.

This time it’s different

‘Rohit, you are right. But this time it’s different. 2008 happened because some greedy bankers in America couldn’t get enough. This is our time. We don’t need any external money to run our markets.’ Mahesh came back as a storm.

Rohit realised the storm, ‘Mahesh you are right but does that mean fundamentals of businesses have changed?’

Funda ka mental

‘Rohit bhai, sab funda ka mental hota hai (Hindi). [fundamentals of a company are just a mental disorder] Mahesh replied with a smirk.

‘Mahesh, you and Meera have studied finance. While you commenting on the basis of a company is not important is not acceptable. I am not saying to avoid stock market investments, but just understand whether you want to invest completely now or wait for a while. As this cycle ends, another will begin. Isn’t it so?’ Rohit now replied with great caution.

Fear of missing out

‘But Rohit, we don’t want to miss out on this journey. What if this cycle has no end. It will make us look fools to sit out while everyone enjoyed.’ Meera said with concern.

Rohit with a smile said, ‘Wasn’t this the same feeling of 2006 also. I am not saying that we are in those times at all. Nobody can predict when market is at peak or it’s at bottom. But on a general basis trend can be understood.

‘Be fearful when others are greedy and greedy when others are fearful.’ – Warren Buffet

Just look around, with so much optimism, people are getting greedy to invest in stock markets. Everyone is entering to make that quick money and dream of a lifestyle which their regular jobs will not give them. But are their good hikes in salary packages? Can companies afford them? Then what will they do of so much money coming their way?’

A bell rang in Mahesh and Meera’s mind.

Youngsters- systematic investment planning

‘Yes, you are completely right. But where is so much money coming from anyways?’ asked Meera.

‘Young salary professionals are easy targets these days. There is so much peer pressure for them these days. That if one person invests and makes some money, everyone wants to join the bandwagon. With tall claims of money doubling in 5 years or so, youngsters have already started planning which car they will buy and where they will spend their international vacation.’ Rohit commented with sarcasm.

‘So what to we do now?’ asked Mahesh.

‘A single simple rule holds true: make good decisions and you’ll succeed; make bad ones and you’ll fail. So, move forward, but with caution. Given these conditions, with even more caution than in the recent past.

The keys to avoiding the classic mistakes (in such market conditions are)

Awareness of History 

If History has to be ready in detail, one would be able to find businesses are cyclical (as discussed above) due to which even markets have gone through it’s own bullish and bearish cycles. When somebody says, they made Rs. 10 lakhs by only investing Rs. 1 lakhs in last 10 years, it doesn’t mean that every year there was a 10% growth. Some years may have seen negative return as well.

Skepticism regarding the Free Lunch

Just because markets have given good investment return in the last few years, it doesn’t mean that there s a free lunch being distributed. There is a cost always attached to it. When few people were chasing that lunch, it was cheap. But since, number of people chasing that lunch has increased, definitely it won’t be cheap anymore.

A great level of caution and prudence need to be exercised by Mahesh now since lunch has started to become expensive and too many people along with him are chasing it.

Asset Allocation and Goal Planning

It all boils down as to why hard earned money is being invested in the stock market? Is it just because bank rates are going down or property rates have been stagnating? Or simply because there is a peer pressure to invest in the stock markets.

It’s more prudent to have the right asset allocation and not merely put all the eggs in one basket just because that basket seems to be very attractive. Also, when purpose of that money being invested is defined, change in price will start to affect on a much lesser scale. Suppose, Meera wants to buy a house after 10 years and her budget comes to around Rs. 80 lakhs. Then by starting with just Rs. 45 thousand per month, she will be able to reach her goal with annual return of merely 8% where she doesn’t need to take a lot of risk in the stock markets.

Such goal planning helps to stop any irrational behaviour which might emerge as markets goes through their own cycles.

Adherence to these things invariably will cause you both to miss the most exciting part of bull markets. But they’ll also make you a long-term survivor.’ said Rohit with a broad smile on his face.

– Jinay Savla

Thursday Trivia ~ Why 12% can be better than 50% – Understanding Different Kind of Return Calculations

It’s a nice Sunday morning, while Suresh is sipping his coffee with his wife. It’s been quite some time that both of them have been considering investing their money. But as it’s usual for professionals these days, weekdays just zip pass, Saturdays are spent in covering up sleep for the week while Sunday is planned for family and few close friends (some of them even meet once a year despite living next door). Hence, a Sunday morning sounds like a perfect idea to discuss about investments. Suresh has been actively looking up the internet and newspapers to understand which would the best instrument to invest his money in. Hence, his first and foremost criteria is ‘returns’. With his education background being non-finance, he is just shocked with so many types. It’s not just the story of Suresh, it’s about most people regardless of any education background they have come from. Most of us just get overwhelmed by so many types of returns and by thumb rule we go in for a number which is highest without trying to understand what it actually means.

In this Trivia, we discuss about these various types of ‘Returns’.

Absolute Returns

It is the return that an asset achieves over a certain period of time.

In the real estate market, investments are always mentioned on ‘absolute return’ basis. A house when purchased 10 years ago at Rs. 1 crore has grown to a value of Rs. 2 crores. Which is 100% absolute return. It sounds like music too. Who wouldn’t like 100% increase in their investment value.

Also, just a food for thought. How often time factor is discounted during such conversations as well?

Simple Annualised Returns

Taking cue from the above example, if 100% return arrived in10 years will make a simple annualised return of 10% assuming the money has been growing at a constant rate. Somehow, talking about 10% annualised growth doesn’t sound as exciting as 100% absolute return growth. This actually happens when most people are looking for investment options.

Simple Annualised Returns are important to note since we are designed to look at investment returns with a maximum horizon of 1 year. On a similar note, it is important to look into one of the most common methods used in describing returns on investment mentioned below – CAGR.

Compounded Annual Growth Rate (CAGR)

Put simply, CAGR works on the principle of interest on interest. When computed on the basis of a house of Rs. 1 crore, a 10% increase on the same would result in Rs. 1 crore and 10 lakhs. For compounding to work, Rs. 1.10 crores would be taken as base and next year’s 10% increase in price would result in Rs. 1 crore and 21 lakhs. On a total of 10 years, CAGR works out to 7.2% for that specific real estate to become Rs. 2 crores.

When, a certain investment has some form of cash flow, it maybe inflow or outflow, returns are calculated on the basis of XIRR.

So now, we have 3 numbers with us – 100%, 10% and 7.2%. Fun of the fact is that all three have given the same form of returns with different mathematical characteristics. Although, often times 7.2% CAGR is neglected and 100% absolute returns is looked into.

However, it becomes important to note that a number computed on the basis of CAGR will not mean that the return is less. While comparing two investments, if one has 50% absolute returns while the other has 12% CAGR, it makes more sense to notice that 12% number. Since, over the period of 5 years, 12% CAGR will yield more investment returns than 50% absolutely returns. Therefore, it’s always advisable to compare investments from the framework of CAGR.

Incase, you need clarity in computing CAGR returns, do write to us.

To summarise, the above terms discussed may sometimes look similar and sound confusing too. In that case, do contact your financial advisor and learn the difference between the same. As the title mentions, 12% CAGR returns are more sweeter than 50% absolute returns.

– Jinay Savla