The Power of Compounding in Long-Term Investing
13 Jun 2024
Why Long-Term Investing?
Long-term investing, fueled by the mighty force of compounding, cultivates steady wealth over a longer period of. Its significance lies in the ability to weather market fluctuations, capitalizing on long term economic growth and alignment with the long term financial goals for sustained wealth accumulation.
Power of Compounding
In the above scenario, Benefits of long term invetsing
Baroda BNP Paribas Large Cap Fund
| Approx. 20yrs | 20x |
|---|---|
| 15yrs | 9.4 x |
| 10 yrs | 6x |
| 15yrs | 9.4 x |
| 10 yrs | 6x |
| 5 yrs | 3.1 x |
Baroda BNP Paribas Multi Cap Fund
Approx 20yrs
26x
15yrs 9.7 x 10 yrs 7x 5 yrs 4.8 x
| Approx 20yrs | 26x |
|---|---|
| 15yrs | 9.7 x |
| 10 yrs | 7x |
| 5 yrs | 4.8 x |
This illustrates a fundamental principle that by allowing your returns to generate further returns, compounding accelerates the growth of your wealth, particularly in the later stages of the investment horizon. Thus for eective long-term wealth accumulation, remain invested over extended periods to fully leverage the power of compounding.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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