Sunday, 3 April 2011

Do you know the effect of Power of Compunding

Dear Readers,

Do you know the effect of Power of Compunding in investments in stock markets. Compunding means in layman language interest on interest. Normally, this is ignored by a retail investor, but what effect it can show is amazing.

Just to showcase you even a 26% annualised returns in stock makets can make your money 10 times in 10 years.
Normally people wonder if you are getting 26% in one year, it will sum up to 260% in 10 years, which will make your money 3.6 times in 10 years.





But actually, this is how this magic works.

A 26% annualised returns makes your money 10 times in 10 years i.e 900% returns.

It is amazing to know about it for any investor.

For better understanding of this concept kindly call up

Mayank Gupta
Wealthbazaar.in
+919967052367

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