Power of Compounding

The power of compounding works by growing your wealth exponentially. It adds the profit earned back to the principal amount and then reinvests the entire sum to accelerate the profit earning process.

When you invest, always apply this thought

Regular monthly savings multiplied by total time = (Much more than) Expected Savings

Here is an actual example

If you had started investing ₹ 15,000 a month (₹ 1,80,000 a year) in the year 2015 & assume a rate of return of 7%, your investment would grow over time like this:

This may look very exciting but, most people miss out on one important fact. It takes money to make money & it takes time to make it grow. Simply put, all your financial goals can be achieved by saving regularly in a disciplined & serious manner. Broadly speaking, this is also known as the 'power of compound interest'.

Try out our free Power of Compounding calculator. Play with the investment amount, time
period & rate of return to see what the future brings

"Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't, pays it" – Albert Einstein

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