Invest in Thousands, Earn in Crores(power of Compounding)

 

Yes, you heard me right, with the help of SIP(systematic Investment plan) mode in either stock market or in Mutual funds, you can earn quite huge in long run of time. 

Stock market need proper knowledge and proper study about the Market and about the companies to invest in, but mutual funds doesn't need that huge amount of knowledge to put in, so I will today tell you about Mutual Funds which work on compound interest that doesn't need much experience and knowledge to invest in and earn out. 

Q. what I need exactly?

A. You need the most important thing which is "patience" and monthly little fixed amount of savings to put in.

Q.  Where and How to start ?

A. You need a PAN and Aadhar Card for this procedure to start with, these are required to open an mutual fund account with any broker you want to.

In India basic age for retirement is 60 years so if you plan your savings as early as possible you can get as high as possible when you retire, and you need not to depend on anyone post retirement. SIP is something which can gives you an whooping lumpsum in return with small monthly fixed investments and that investment should be for long time. 

"To get the huge amount of return one should maintain consistency in the investment planning and a great discipline to avoid mistakes" 

Coming to SIP investments one should know some facts and important keypoints about the Mutual fund investments like 1. which fund have to select  2. Their annual returns.  3. how Mutual funds work on  4. mainly their expense ratio which should be basically less then 1%.

Most of the people don't know the magic  of Compound Interest.( you can search it in Google by typing compound interest calculator and enter the details and can see the amount of investment and returns), If we consider some A start investment by the age of 30 and he adds an SIP of ₹5000 INR everymonth he can get ₹95Lakh INR by age of 55 by investing total amount of ₹15Lakh INR. 

and with the same fixed amount of ₹5000 INR for 30 years can change the whole scenario and A can get ₹1.8crore INR by investing ₹18 Lakh INR and that's the beauty of Compounding with the help of time. many people refer it as "Compounding is the eighth wonder". 

Here I have  taken the annual return rate as 12% but it's not a fixed one as year by year returns may be in range of 10 to 15% according to the Fund. so just look in to their past record of returns 

Here I have taken an investment of ₹5000 INR and by increasing your investing amount you get more and high returns on it and also Your income will increase  annually so you can increase your investment amount by some percent annually to reach your goal bit earlier. 

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