Benefits of Compounding

Why Is It So? Let Us Understand

In Compounding, interest is generated not only on the initial invested amount but also on the previously accumulated interest. Reap the benefits of Compounding by investing early to achieve your financial goals.



Age 25

Starts investing for his retirement

₹ 50,000 p.a.


Age 30

Starts investing for his retirement

₹ 62,500 p.a.



When they turn 50, they both had invested
₹ 12,50,000 each.
However, their investment or holding value were different.
Let us see what is their investment value when they turn 50.

Value Of Investment

We assumed that both earned 10% returns (compounded annually) on their investment.

Let us see how their investment grew over years

Benefits Of Compounding


Starting early gives you the benefit of investing smaller amounts.


Staying invested for longer help you in getting better returns.


Proper planning can help you achieve your financial goals.

This Information is awareness of Mutual Fund and general understanding. Also not intended to be as offer or solicitation for the purchase of sale of any financial product or instruments. Reader of this article are advices to take independent professional advice for before investment.

Mutual Fund Investments are Subject to market risks, Read all scheme related document carefully.

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Gallant Ventures August 14, 2019 0 Comments