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Showing posts from July, 2024

Understanding The Power Of Compounding, Investing In Mutual Funds

Image Source: tech_BG / Shutterstock Seeking for financial support at your old age could be difficult, while having a corpus of a million can give you a financial freedom post retirement. A study shows that 90% of earning individuals in the world doesn't even apply the rule of compounding at the right age. Albert Einstein one said, compounding is the 8th World of this world and practically its even true. Now lets understand what compounding is and how this helps you to build a massive maturity corpus while investing just peanuts.  What Is Compounding? Compounding is like a repeated interest which you gets on your invested value. Now let's understand compounding with an example. Jamie is a person who started investing in stocks, mutual funds, bank FD or any other financial instrument where he earns an interest of 12% per annum. Now let's consider the monthly investment amount is 100$ per month and it's starting from January. Now in the entire month of January Jamie has g