The magic of compounding

01:12 Mins Read

This video explains the magic of compounding on your investments.


Surely, you’re no stranger to the concept of compounding. The secret of its magic lies in the fact that it gives you interest on your interest Or profit on your profits. The end result? Your money grows exponentially with time. For example, say you invest Rs. 10 lakhs today at 10% interest per annum. Without compounding, it will grow to just Rs. 25 lakhs at the end of 25 years. But with compounding? Well, your money will grow to Rs. 1.08 crore - all thanks to compound interest! To take full advantage of the magic of compounding, you need to do three things. Start early. Invest regularly. And stay invested. Simple, isn’t it? Now, head to the next chapter to find out what India’s favorite financial investments are.

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