Power of Investment 2025
Friends we have been hearing since childhood that money doesn’t grow on trees but if I tell you that if there is a tree of money which is grown by putting money instead of water then that tree will give us money instead of fruits and the bigger that tree grows the more money it will give us. Many people might be finding this a joke because you haven’t seen the magic of Power of Compounding yet. Power of investment 2025
Power of investment 2025
Friends, you must have heard the name of compounding some time or the other. Compounding means that we get interest on the money we invest in the market. That interest can be anything like 10%, 20% or 30%.
This interest gets added to our invested amount. Again we get the interest on this page and again this amount gets added to our invested amount and this cycle continues in this manner. Power of investment 2025
For example, if you invest ₹10,000 in a stock and you get a return of 10% every year, then you make a profit of ₹1000 in the first year at the rate of 10%. Due to which your invested amount has increased from ₹ 10000 to ₹ 11000. Now next year you will get interest on ₹ 11000 i.e. we will get interest of ₹ 1100 instead of ₹ 1000 at the rate of 10% and again this amount will be added to our invested amount and next time we will again get more interest.
Power of investment 2025
But you must be thinking what is so special about this because by getting ₹ 100 more profit every year, how much will be the maximum profit in the end, if you want to see the profit, then you just have to answer one of my questions?
If we invest ₹10000 every month and we get a return of 20% on it every year, then after 10 years we will have invested ₹1200000 whose value will be 38 lakh 23,636rs. Power of investment 2025
Now you have to tell me if we continue this way for the next 10 years then what will be the value of our money after 20 years? Power of investment 2025
Some people’s answer would be double of 38 lakhs, that is, 70 lakhs, some would be one crore and some would be 1.5 crores but the correct answer is Rs 3 crore 16 lakh 14794. You don’t need to clean your ears, you heard it right, 3 crore 16 lakh 14793, this is the power of compounding.
Power of investment 2025
But keep one thing in mind, if you want to see this profit in your bank account, then these three things are most important for you. Power of investment 2025
Long-term Vision
1. First of all, you always have to invest your money for a long time and there is a rule of compounding, if you cannot think about 5 years here, then you do not need to waste even 5 minutes here because the magic of compounding always appears in the long run.
Regularly Investment
2. Second investment, you will have to invest continuously here, you can invest 10%, 20% or 25% of your income as per your convenience every month so that your money tree gets water continuously and it can grow big.
Knowledge
3. Third knowledge – in the example we showed you a return of 20% but no bank gives a return of 20%. For this you will have to invest your money in things like gold stocks and mutual funds so that you can get maximum returns.
For example, if I look at the example again, there we got a return of 20% which gave us a profit of Rs. 3 crore 16 lakh 14000 but if we make it 6% which is the return we get on HD in the bank, then our profit of Rs. 3 crore 16 lakh 14000 gets reduced to Rs. 46 lakh 43 thousand, hence it is very important to invest your money at the right place.
Power of investment 2025
Now if we talk about the right investment options for compounding?
Gold
1. So first of all you can invest in gold. You will easily get a rate of 10 to 12% every year in gold. The most special thing about investing in gold is that if there is a period of crisis, then gold gives the best return in difficult times, like during the time of Covid, gold gave a return of 12% and to invest in gold, you do not need to buy and keep it at home, you can invest in gold online.
Mutual Fund
2. Second mutual fund – If you do not want to take the headache of investing your money in the right place, then you can invest in mutual funds. In this, you give your money to a fund manager who, using his knowledge, invests your money in the best place and gives you higher returns. If you invest in equity funds, then you will easily get a return of 14 to 15% every year.
Stocks
3. Thirdly, if you invest your money in stocks with a little knowledge, then you will easily get a return of 18 to 20% every year, but investing in stocks is a bit risky, for this you will have to learn a lot.
Power of investment 2025
Now I don’t know which of these three categories you will go to, so let’s take an example, if you invest Rs 10-10,000 every month in these three, then what will be the value of our money in the long run?
So after one year we would have invested 120000 rupees in these three,
At the rate of 12% in Gold, the value of our money would be 1 lakh 28 thousand,
At the rate of 15% in Mutual Fund, the value of our money would be 1 lakh 30 thousand,
At the rate of 20% in Stocks, the value of our money would be 1 lakh 33 thousand,
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After 5 years we would have invested ₹600000 in these three.
At the rate of 12% in Goal, the value of our money would be 8,24,000
At the rate of 15% in Mutual Fund, the value of our money would be 8,96,000
And at the rate of 20% in Stock, the value of our money would be 10,34,000
After 10 years, we would have invested 12 lakh rupees in these three.
At the rate of 12% in Goal, the value of our money would be 23 lakh 23 thousand rupees
At the rate of 15% in Mutual Fund, the value of our money would be 2786000
And at the rate of 20% in Stock, the value of our money would be 38 lakh 23 thousand rupees.
After 20 years, we would have invested 24 lakh rupees in these three.
At the rate of 12% in Goal, the value of our money would be 99 lakh 91000
At the rate of 15% in Mutual Fund, the value of our money would be 1 crore 51 lakh 59000
And at the rate of 20% in Stock, the value of our money would be 3 crore 16 lakh 14 thousand rupees. Power of investment 2025
Power of investment 2025
But you will be surprised to know that only 1% of people are able to reach here. Most people stop investing before 5 years, due to which they do not see the magic of compounding. It is true that to take advantage of compounding, you need to have a lot of patience and discipline.
So friends, this was the complete knowledge of compounding by which you can plant a money tree and secure your future. The right time to invest is now and start investing now because the whole game here is about time.
Power of investment 2025