How Compounding Can Make You a Crorepati
Equitymarketinsights.com
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What is Compounding?
– Compounding is earning returns on your returns.
– It turns small investments into massive wealth over time.
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Start Early, Grow Big
– The earlier you start, the more time compounding works for you.
– Small investments can grow into crores with time.
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Power of Patience
– Compounding works best with patience and consistency.
– Let your money grow uninterrupted.
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Example of ₹5,000/Month
– Invest ₹5,000/month at 12% annual returns.
– In 30 years, it grows to over ₹1.5 crores!
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Rule of 72
– Use the Rule of 72 to estimate doubling time.
– Divide 72 by the annual return rate.
Example:
At 12%, your money doubles in 6 years!
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Reinvest Your Returns
– Reinvest returns to maximize growth.
– Compounding works best when your money stays invested.
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The Impact of Time
– Time amplifies compounding.
– The difference between 20 years and 30 years is HUGE!
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Avoid Early Withdrawals
– Withdrawing early breaks the compounding cycle.
– Stay invested to maximize your wealth.
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Start Small, Dream Big
– Even small amounts can lead to crores.
– Start today and let compounding do the magic!
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Conclusion
– Compounding is the key to becoming a crorepati.
– The formula is simple: Start early, stay consistent, and be patient!
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