Magic or Math – Convert Rs 5000 to Rs 7 Crore!

Einstein called “Power of Compounding” one of the wonders  of the world and went on to say that those who don’t understand it will suffer from it while others will make hay!

In essence, the power of compounding basically talks about how money multiplies in an accelerated fashion:

  • When regular flows happen;
  • For many number of years;

This is because frequent interest on an amount plus the interest on the interest add to a “snowball”effect resulting in  numbers beyond our wildest dreams!

The results are astounding as some of us who have invested into PPF or EPF or Recurring deposits know. But the magic is even more pronounced when used on Equities, which as an asset class has delivered upwards of 15% per annum and likely to deliver in the same range for the foreseeable future if investments are maintained for long enough periods.

Some of us may not know this but a regular investment of just Rs 5000 into equities (which can generate 15% annualised) each month, for a period of 35 years can generate Rs 7 crs at the end of the period! That’s right! – Rs 7 Crores! No calculation errors!

And if that doesn’t pop your eyes, use our calculators at to work out the desired amount at the end of any period and get the value of investing you need to do monthly.

No Magic – Just pure simple math of regular saving into a great asset class!

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