Investment Basics

What is the monthly surplus in the given example?

• Rs.10,000/-

• Rs.20,000/-

• Rs.30,000/-

• Rs.40,000/-

What is the assumed annual salary hike in the given example?

• 5%

• 8%

• 10%

• 12%

How many years does the person in the example plan to work before retiring?

• 10 years

• 15 years

• 20 years

• 25 years

What is the total cash balance after 20 years in the given example?

• Rs.1.7 Crs

• Rs.2.4 Crs

• Rs.3.3 Crs

• Rs.4.26 Crs

What is the main reason to invest according to the text?

• To fight inflation

• To create wealth

• To meet life's financial aspirations

• All of the above

Which asset class has the potential to beat inflation in the long run?

• Fixed income instruments

• Equity

• Real estate

• Commodities (precious metals)

What is the average return from fixed income instruments as of June 2014?

• 5% - 8%

• 8% - 11%

• 11% - 14%

• 14% - 17%

What is the average return from equity investments over the past 15 years?

• 5% - 8%

• 8% - 11%

• 11% - 14%

• 14% - 17%

What is the main disadvantage of real estate investment?

• High risk

• Low liquidity

• Low returns

• Complex transaction procedure

What is the historical return on investment in gold and silver?

• 2% - 4%

• 4% - 6%

• 6% - 8%

• 8% - 10%