1. At what age should you begin investing? play The magic of compounding 2. India's favorite financial instruments: FDs and LIC play FDs and LIC today 3. India's favorite non-financial instruments: Gold and Real Estate play Gold and Real Estate today 4. Evolution of equity based investments play Equity investing for beginners 5. Investments lessons from your parents play 5 evergreen investment options

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The magic of compounding

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This video explains the magic of compounding on your investments.

Transcript

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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