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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Questions on MVA unity rises

Mumbai: Cracks have surfaced within the Maha Vikas Aghadi (MVA) after the Shiv Sena UBT announced the nomination of former leader of opposition Ambadas Danve for the Maharashtra Legislative Council elections slated for May 12. Congress has announced that it will field its nominee in the elections, especially after Shiv Sena UBT president Uddhav Thackeray opted out of the polls after his present term in the Upper House ends on May 13. The Maharashtra Pradesh Congress Committee president...

Questions on MVA unity rises

Mumbai: Cracks have surfaced within the Maha Vikas Aghadi (MVA) after the Shiv Sena UBT announced the nomination of former leader of opposition Ambadas Danve for the Maharashtra Legislative Council elections slated for May 12. Congress has announced that it will field its nominee in the elections, especially after Shiv Sena UBT president Uddhav Thackeray opted out of the polls after his present term in the Upper House ends on May 13. The Maharashtra Pradesh Congress Committee president Harshwardhan Sapkal announced that the party will field its candidate in the state council elections, expressing serious displeasure over Shiv Sena UBT’s move to nominate Ambadas Danve and not Uddhav Thackeray. Sapkal and State Congress Legislature Party leader Vijay Wadettiwar last week declared that the party will support Uddhav Thackeray in the state council elections and will not put up its own nominee. However, both had hinted that if Uddhav Thackeray decides to opt out, the Congress will enter the electoral fray. For the election of nine seats, the quota is 29 votes. The present strength of MVA is 46, comprising Shiv Sena UBT 20, Congress 16 and NCP SP 10. The last date for filing nominations is April 30. Sapkal last week met Uddhav Thackeray while extending the Congress party’s support to him. Sapkal firmly endorsed Uddhav Thackeray as the key face of the Maha Vikas Aghadi (MVA) alliance, stating that the alliance will move forward only with him at the forefront. Following a recent meeting, Sapkal emphasised that if Thackeray contests the Legislative Council election, it would be welcomed. Sapkal declared that Uddhav Thackeray is the undisputed face of the Maha Vikas Aghadi in Maharashtra. He stated that it is a point of joy if Thackeray goes to the legislative council, stressing that the alliance will move forward only if he is leading it. Earlier, the BJP had already announced five nominees, while Shiv Sena has yet to declare its candidates. The NCP held a core committee meeting chaired by Deputy CM Sunetra Pawar on Wednesday morning and shortlisted some names. The party is expected to announce its nominee late Wednesday evening. Observers said that if the Congress decides to stick to its stand, the Shiv Sena UBT and NCP SP will have to strive to keep their respective legislators together to avoid cross-voting.

Rule of 72, 114 and 70

Updated: Feb 10, 2025

Rule of 72, 114 and 70

In the world of personal finance, understanding the time value of money is crucial. Three simple rules — the Rule of 72, Rule of 114, and Rule of 70 — can help individuals make informed financial decisions and evaluate investment options.


The Rule of 72: Doubling Your Money

The Rule of 72 is a powerful tool for understanding how long it will take to double your money based on a given rate of return. To apply the rule, divide 72 by the annual rate of return. For example, if a bank fixed deposit offers a 7% return, dividing 72 by 7 reveals that it will take approximately 10 years to double your money. On the other hand, equity mutual funds, with an expected 12% return, will double your investment in about six years. The Rule of 72 highlights the importance of time in growing wealth — the higher the return, the faster the doubling of your investment.


The Rule of 114: Tripling Your Money

While the Rule of 72 focuses on doubling your money, the Rule of 114 helps you understand how long it takes to triple your investment. The calculation is similar: divide 114 by the rate of return. For example, with a 7% return from a bank fixed deposit, your money will triple in roughly 16 years. For equity mutual funds, which offer a 12% return, it will take about 9.5 years to achieve the same result. The Rule of 114 provides valuable insights into the long-term effects of your investment choices and helps you set realistic expectations for wealth accumulation.


The Rule of 70: The Impact of Inflation

Inflation can erode the value of your money over time, reducing your purchasing power. The Rule of 70 helps estimate how long it will take for inflation to halve the value of your money. By dividing 70 by the inflation rate, you can assess the long-term impact of inflation on your capital. For instance, with an inflation rate of 7%, your money will lose half its value in about 10 years. If the inflation rate is 10%, it will take just 7 years for your money’s purchasing power to be reduced by 50%. This rule emphasizes the importance of protecting your wealth from inflation’s detrimental effects.


The Takeaway

The Rule of 72, 114, and 70 are essential for understanding the power of compounding and the impact of inflation on your wealth. By leveraging these rules, individuals can make smarter investment decisions and protect their capital from inflation’s effects. Time is money, and these rules offer a simple yet effective way to grasp the long-term impact of financial decisions.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605.)

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