Friday, March 21, 2008

Size does Matter...

"Size Doesnot Matter"... Whoever said it, shall be proven wrong in the case of Investments. Imagine the following two cases : -
  1. A person invests Rs 1000/- into a scheme "A" which performs at the rate of 100% p.a. With this the Capital Gain amounts to Rs. 1000/-
  2. Same person invests Rs 10000/- into a scheme "B", in this case just a meager performance of 10% or above p.a. could fetch a return of Rs 1000/- or more.
Hence while dealing with Investments a mere performance in terms of "%" alone is highly insignificant, if the Cash you have put in is meager. The amount of Cash / Fund Size allocated does matter..
Hence Size does Matter?????