This is a very sensible approach and the way to go when you have a target corpus in mind and a time frame. That math we do to get that peace of mind
I use the following approach:
- What happens if I do not add a single rupee into my portfolio from today. How will my life turn out to be.
- Repeat the same with X monthly deposits, 2X monthly deposits, 3X etc.
- Any month I make sure I do at least the X. Anything over this is a bonus.
- I have also considered a case with negative returns and principal losses. But that was depressing.
Thank you for your reply.
This is better suited in a different discussion. There is an entire category dedicated to stock valuation – Stock Analysis & Valuation – ValuePickr Forum
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