Which Is The Eighth Wonder Of The World is the power of compounding.
Let’s see the magic of compounding. In 2003, Maruti’s IPO came at Rs 125 per share and at the same time, the price of Maruti Alto was Rs 3 lakh. If you had not bought Maruti Alto but bought Maruti shares worth Rs 3,00,000, you would have got 2400 shares and today in 2024, the price of one share of Maruti is Rs 12310. And according to this, the value of our investment would have become Rs 2 crore 95 lakh 44000.
This example was given because people think that nothing happens with 10,000 -15,000 rupees. Now that your mind has been opened, let us understand the power of compounding. So, if we invest in Nifty i.e. India’s top 50 companies, then we get a return of 10 to 12% every year.
If you invest in a mid-cap company, i.e. a company which is neither too big nor too small, then you can easily get a return of 12 to 15%.
If you invest in a small-cap company, i.e. a very small company with higher risk, then you can easily get a return of 18 to 20%.
Which Is The Eighth Wonder Of The World
Now if we invest Rs 10,000 each every month in these three, then let us see what will be the value of our money in the long run.
Nifty = 12%
After one year we would have invested Rs. 1,20,000 in Nifty, whose value will become Rs. 1,28,093 at the rate of 12%.
After 3 years we would have invested Rs. 3,60,000 in Nifty, whose value at the rate of 12% will become Rs. 4,35,076.
After 5 years we would have invested Rs. 6,00,000 in Nifty, whose value at the rate of 12% will become Rs. 8,24,864.
After 10 years we would have invested Rs. 12,00,000 in Nifty, whose value at the rate of 12% will become Rs. 23,23,391.
After 15 years we would have invested Rs. 18,00,000 in Nifty, whose value at the rate of 12% will become Rs. 50,45,760.
After 20 years we would have invested Rs. 24,00,000 in Nifty, whose value at the rate of 12% will become Rs. 99,91,479.
Which Is The Eighth Wonder Of The World
Midcap = 15%
After 1 year we would have invested Rs. 1,20,000 in Nifty, whose value will become Rs. 1,30,211 at the rate of 15%.
After 3 years we would have invested Rs. 3,60,000 in Nifty, whose value at the rate of 15% will become Rs. 4,56,794.
After 5 years we would have invested Rs. 6,00,000 in Nifty, whose value at the rate of 15% will become Rs. 8,96,817.
After 10 years we would have invested Rs. 12,00,000 in Nifty, whose value at the rate of 15% will become Rs. 27,86,573.
After 15 years we would have invested Rs. 18,00,000 in Nifty, whose value at the rate of 15% will become Rs. 67,68,631.
After 20 years we would have invested Rs. 24,00,000 in Nifty, whose value at the rate of 15% will become Rs. 1,51,59,550.
Which Is The Eighth Wonder Of The World
Which Is The Eighth Wonder Of The World
Smallcap = 20%
After 1 year we would have invested Rs. 1,20,000 in Nifty, whose value will become Rs. 1,33,829 at the rate of 20%.
After 3 years we would have invested Rs. 3,60,000 in Nifty, whose value at the rate of 20% will become Rs. 4,96,010.
After 5 years we would have invested Rs. 6,00,000 in Nifty, whose value at the rate of 20% will become Rs. 10,34,542.
After 10 years we would have invested Rs. 12,00,000 in Nifty, whose value at the rate of 20% will become Rs. 38,23,636.
After 15 years, we would have invested Rs. 18,00,000 in Nifty, whose value at the rate of 20% will become Rs. 1,13,42,949.
After 20 years, we would have invested Rs. 24,00,000 in Nifty, whose value at the rate of 20% will become Rs. 3,16,14,794.
Which Is The Eighth Wonder Of The World
99% of the people watching this video are in the age group of 18 to 30 years and it is people of this age group who can take maximum advantage of the power of compounding. If you can start with even Rs.500 then do so because here the whole game is about time, hence investing is very important.
Which Is The Eighth Wonder Of The World
Which Is The Eighth Wonder Of The World