What is the 7-3-2 rule?
Ans. The 7-3-2 rule is a wealth-building strategy based on compounding. It suggests saving your first ₹1 crore in 7 years, the second in 3 years, and the third in 2 years. As your investment grows, returns increase faster, helping you build wealth more quickly with discipline and higher SIP contributions.
What is the 10-5-3 rule?
Ans. The 10-5-3 rule is an investing guideline for expected long-term returns. It suggests equities may return 10% annually, debt instruments around 5%, and savings or cash about 3%. It helps investors set realistic expectations and balance risk across different asset classes over time.
Who owns 93% of the stock market?
Ans. No single person owns 93% of the stock market. Instead, the top 10% of U.S. households collectively own about 93% of total stock market wealth. This shows a strong concentration of wealth, where most market gains benefit the richest households rather than the majority.
What is the 3-5-7 rule in trading?
Ans. The 3-5-7 rule is a risk management strategy for traders. It means risking only 3% of capital per trade, limiting total exposure to 5% at a time, and aiming for at least 7% profit on winning trades. It promotes discipline, capital protection, and consistent long-term growth.
What is the biggest mistake in the stock market?
Ans. The biggest mistake in the stock market is panic-selling during market volatility. Investors often sell in fear when prices fall, locking in losses. Other mistakes include holding cash too long, failing to rebalance, overconfidence, and selling good stocks too early out of short-term fear.