“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”
Through the power of compounding, a small amount of money can grow into a substantial sum over a period. The longer the timeframe, the greater the value.
The above illustration states, in order to accumulate the wealth of Rs.91 Lakh to Rs.2.75 Cr, all you gotta do is invest 10000 monthly for the next 25 years.
The earlier you start, the longer you earn returns, and the longer your returns earn additional returns. Time matters more than the size of investment and yield. The power of compounding forms on the basis of investment and financial planning. Between your limited means and your unlimited desires, lies the ability of investments to convert money flows into wealth. That would not be possible without the power of compounding.