The sequence of return in a market-linked product is not linear as compared to a traditional recurring deposit. If for example in the very 1st year the markets drop by -15%, then the required rate of return for the next 14 years goes up to 7.25% from 7.00%, keeping the installment amount constant.
Market Wrap: Sensex falls 142 points, Nifty holds 23,900; HDFC Bank shares tumble 3%
Indian stock market closed in the red, with benchmark indices Sensex and Nifty falling up to 0.2% as Iran-US tensions simmered and rupee declined. Broader