To be an investment winner, start very early.....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)  

To be an investment winner, start very early in life....

If there is one thing in investing which can make you a real winner, is the power of compounding. And it works very very silently, but makes a remarkable difference over the longer periods of time. Lets look @ the case of three friends who are aged 50 now and see who won in the race of investing. The friends are Mr. Cautious, Mr. Responsible, Mr. Fun.

Mr. Cautious started investing @ his age 30 by putting Rs 1 lac @ a return of 12% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 9,65,000

  

Mr. Responsible started investing @ his age 35 by putting Rs 1 lac @ a return of 15% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 8,14,000

Mr. Fun started investing only @ his age 40 by putting Rs 1 lac but @ a return of 18% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 5,23,500 

The results are there to be seen. 

# Mr. Cautious who earned 12%, lowest among the three still made good money because he started quite early in life and became a winner @ the end. Time ripened his money.

# Mr. Fun who started very late in his life and could not be a winner despite earning very high 18% returns on his investment. He finished third despite earning very high returns compared to the other two. The reason being he had little time compared to the other.

Key takeaways of this study are: 

# It's important to start investing early in life, even if the returns are comparatively low. That's how Mr. Cautious won the race, despite earning lower returns than the other two.

# Even if you make high returns @ the later stage, you may not make enough money because of the time factor. That's how Mr. Fun lost the race, despite earning 18% returns.

# Power of compounding (POC) is @ work very very silently and effectively.

Sooner you realize the importance of POC, better it is for your financial future...... Because POC makes no noise and it's very silent in multiplying your value of investment.

Experts @ Money Avenues can make you an investment winner by providing right investment solutions.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

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