Rs 2,000 can turn into almost Rs.1,80,000 after 40 years (at 12% return a year). Rs 2,000 invested every month for 40 years can turn into almost Rs 2.4 crores. Investing in equity-based Mutual Funds can help you pay for your biggest goals.
That 12% average increase may not sound like much, but given time, this interest compounds to produce incredible returns.
Imagine someone told you that you could turn Rs.2,000 into Rs. 180,000 with no work whatsoever? It sounds too good to be true, but it’s completely possible if you understand compound interest (which will be discussed in the next blog).
The key element to remember here is time. The longer you have your money invested, the more powerful compounding becomes. That means the younger you get started, and the more patient you are, the greater returns you will reap in the future.
However, you don’t need Rs. 2,000 to get started. You can start small by investing just your spare change. You’ll be amazed how quickly your spare change can grow.
The biggest advantage you can give yourself is to start early and let that compounding work its magic.