1) How much you save matters more than how much you earn. The story of Ant and Cricket shows that saving first and limiting expenses allows one to retire earlier with more savings. 2) How you invest matters more than how much you save. Investing the same amount for longer periods and in appropriate assets based on goals and horizon can significantly impact returns. 3) How long you invest matters more than how big you invest initially. The power of compounding allows smaller initial sums to grow substantially over longer periods due to incremental gains. 4) How you manage your investments matters more than market performance. Sticking to a plan without overreacting to markets typically leads to returns closer to the market versus lower returns from

1. Hornmerchant ®
Simple Things That Matter More in
your Wealth Creating Journey
• How much you save matters more than how much you earn
• How you INVEST matters more than how much you save
• How LONG you invest matters more than how big you invest
• How you behave (perform / manage) with asset classes and markets matter more
than how the asset classes and markets behave (perform)

2. How much you save matters
more than how much you earn.
Two friends…Ant and Cricket…
Cricket spends first on his needs & wants and tries
to save if anything left after spending.
Ant calculates, how much retirement corpus he
needs and how much he should be saving every
month to accumulate that corpus. He saves first as
much possible first and tries to limit his expenses
on ‘needs’ within what is remaining.
Ant retires early and has more than he ‘wanted’ in
life.
Cricket continues to work on a contract job after
retirement for the money needed for his ‘needs’.
Income – Expenses = Savings
Hornmerchant ®
Income – Savings = Expenses

3. How you INVEST matters more
than how much you save
Hornmerchant ®
for @
8% 13%
10 Years ~ 2.2 L ~ 3.4 L
15 Years ~ 3.2 L ~ 6.3 L
20 Years ~ 4.7 L ~ 11.5 L
₹ 1 Lakh Invested
Choose Investments appropriately in line
with your Investment Horizon / Goals

4. How LONG you invest matters more
than how big you invest
Hornmerchant ®
Image Courtesy: wikihow.com
So, time is more important; allow
your investments to grow and
benefit from the power of
compounding!
₹ 1 Lakh Invested @ 13%
for 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs
Would Grow
to
~ 1.8 L ~ 3.4 L ~ 6.3 L ~ 11.5 L ~ 21.2 L
Total Gain ~ 0.8 L ~ 2.4 L ~ 5.3 L ~ 10.5 L ~ 20.2 L
Incremental
Gain
~ 0.8 L ~ 1.6 L ~ 2.9 L ~ 5.2 L ~ 9.7 L
Gains increase disproportionately with every increase in the
investment period!
₹ 1 Lakh Invested for 20 Years grows bigger
Than ₹ 2 Lakh Invested for 10 Years!
@ 13% 10 Yrs 20 Yrs
₹ 1 Lakh ~ 3.4 L ~ 11.5 L
₹ 2 Lakh ~ 6.8 L ~ 23 L

5. How you behave (perform / manage) with
asset classes and markets matter more
than how the asset classes and markets
behave (perform).
Hornmerchant ®Image Courtesy: legisone.com
Aug 2013 Aug 2018 CAGR
BSE Sensex
Level (Pts.)
~ 19,000 ~ 38,000 ~ 15%
Large Cap MF
Cat. Avg.
- - ~ 20%
An Investor
Returns
- - ~ 10%
Investment
Return
Investor Return
BEHAVIOUR
GAP
Don’t fiddle with your investments
too much! Market has always
rewarded the patience and penalized
the over-action!