- Do you know why Einstein called compounding the 8th wonder of the world?
- Power of compounding makes SIPs the best investment vehicle to launch your dreams into reality!
Everyone has desire to travel with family whether a person is a blue collared(construction worker) or a white collared(Serviceman) employee.
Mr. A (Blue Collar) and Mr. B (White Collar) both planned to save money for a family tour.
Lets demonstrate it by the investment habit of Mr. A & Mr. B
‘A’ adds 5000 every month in his piggy Bank while ‘B’ starts an SIP (Systematic Investment Plan) of 5000 every month @ 12% in Mutual Funds
SIP : A systematic investment plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums.
Compounding : Compounding is the process of the exponential increase in the value of an investment due to earning interest on both principal and accumulated interest.
After the completion of 5th Year ‘A’ accumulates Rs 3 Lakhs whereas ‘B’ approximately accumulates Rs 4 Lakhs with the help of the “Eighth Wonder of The World” – which is compounding, as said by Albert Einstein.
This shows the ‘Hardwork of Mr. A’ and the ‘Hardwork with Smartwork of Mr. B’.
No matter whether an individual is Rich or Poor, anyone can start investing in Mutual Funds for fulfilling their dreams.
As “No one is Rich from Birth, everyone has to Dig from Earth”.
The writer of this post is Ms Charu Chhabra, she is a team leader in Mutual Funds division at Wishfin
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.