By starting early, an investor can take advantage of time and compounding interest, the combination of which can multiply one’s wealth beyond imagination.
Mutual funds help us to create wealth in long term. They can help fund us for various financial goals in life such as children’s education, marriage, luxury cars, foreign holiday, and retirement and so on.
While most of us get busy in our daily life managing work, family and other responsibilities, our investments take a back seat. Therefore, we do not get time to monitor our personal investment decisions to meet our short, medium and long term needs/goals. Therefore, we at Wealth Infinite believe that it is important that all our clients make investments that create wealth over a longer period of time.
By starting early, an investor can take advantage of time and compounding interest, the combination of which can multiply one’s wealth beyond imagination.
Power of Compounding
The rule is simple, the sooner you start, the more time you give to your money to grow.
The rule is simple, the sooner you start, the more time you give to your money to grow. For eg, if you invested Rs. 10,000 a month on your 40th birthday, in twenty years’ time, you would have saved Rs. 24 Lakhs. If that investment grows in equity mutual funds at 14%, it would be worth over Rs. 1.17 Crore. However, if you invested Rs. 10,000 a month on your 30th birthday, in thirty years’ time, you would have saved Rs. 36 Lakhs. If that investment grows in equity mutual funds at 14%, it would be worth over Rs. 4.59 Crore.
This difference is due to the effect of compounding. The benefits of investments are magnified through compounding when you invest for long term through regular SIPs.