What is the 80/ 20 Investment rule in india

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80/20 investment rules refers to the 20% of investments or assets can generate 80% of a person’s retirement income. The rule encourages investors to focus on a select group of investments with the highest potential returns to maximize their retirement savings or another way  what does it say if you invest 100/- then you will invest 80% of that in the long term passively.
what is passive investment ? where you do not have to see it every day you should actively manage 20%maximum.Because if you actively manage the most amount of money
then you will not only take stress you will also be at the risk of losing that money because you may start gambling with that money.not actual gambling but taking unnecessary
which you should not with your money.

Frequently Asked Question

What is the 80-20 rule for investing?

This principle suggests that roughly 80% of outcomes (outputs) come from 20% of causes (inputs). Applied to investing, it implies a small portion of your holdings might contribute to a significant portion of your returns.

What is the 80-20 rule for funding?

The 80/20 rule, also known as the Pareto principle, suggests that a small number of causes (20%) often lead to a large number of effects (80%). In the context of fundraising, this principle suggests that a small number of donors (20%) may contribute the majority of funds (80%).

Conclusion

80/20 investment rules refers to the 20% of investments or assets can generate 80% of a person’s retirement income. The rule encourages investors to focus on a select group of investments with the highest potential returns to maximize their retirement savings or another way  what does it say if you invest 100/- then you will invest 80% of that in the long term passively.

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