A BIT LONG POST BUT I ASSURE YOU EITHER IT WILL MAKE YOU SMILE OT IT'L MAKE YOU THINK !
As i am a strong believer of SIP pattern of investing in equities & most importantly the COMPOUNDING POWER over the longer term, i usually try to derive more n more insight on the impact of compounding over different time frames & different amounts. While doing this i came across an amazing insight on the POWER OF COMPOUNDING.
Now before going further i declare that i know the situation i am taking is hypothetical but in my view it is not undo-able. It depends upon individual to individual how he may take it.
Some may laugh on this but i am sure it will RING A BELL in few people's mind.
SITUATION (Hypothetical)
Some of us are aware of power of compounding but i doubt it that we truly know what impact compounding creates over real long term. Lets try to understand this wit a situation.
What is the value of 1000 Rs today ?
i guess
* A movie with family.
* A dinner
* 1 month's mobile bill.
* Cost of cigarettes a smoker smokes in a month.
etc etc etc
what i mean to say it is a small amount that we all are comfortable spending on any item or service which gives us temporary feel good factor.
Now i want that instead of spending these 1000 rs on temporary possessions i want to pass on a legacy to my future generations so that they should remember me FOREVER.
Now if i say that i start putting this amount every month in an equity diversified SIP for the rest of my life & i somehow make an arrangement that ever after i die this amount continues to be invested monthly till 100 years in total !
Crazy it seems na !
but lets find out the results of this investment.
Monthly Investment : 1000 Rs
Tenure : 100 Years
Average Return Expected : 15 %
Total Amount Invested : 12 lacs
MATURITY AMOUNT ???????????????????
Any Guesses ?
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1014150,95,952/- Compounded Annually.
( One Kharab One Arab Forty one Crore Fifty lac Ninety Five thousand nine hundred & fifty two Rs )
Think !
Disclaimer : This is a hypothetical situation & not any persuasion in any form to do the thing.
Shri Om
Wealth Plannerz India
9463958158
Creating Meaningful Wealth
As i am a strong believer of SIP pattern of investing in equities & most importantly the COMPOUNDING POWER over the longer term, i usually try to derive more n more insight on the impact of compounding over different time frames & different amounts. While doing this i came across an amazing insight on the POWER OF COMPOUNDING.
Now before going further i declare that i know the situation i am taking is hypothetical but in my view it is not undo-able. It depends upon individual to individual how he may take it.
Some may laugh on this but i am sure it will RING A BELL in few people's mind.
SITUATION (Hypothetical)
Some of us are aware of power of compounding but i doubt it that we truly know what impact compounding creates over real long term. Lets try to understand this wit a situation.
What is the value of 1000 Rs today ?
i guess
* A movie with family.
* A dinner
* 1 month's mobile bill.
* Cost of cigarettes a smoker smokes in a month.
etc etc etc
what i mean to say it is a small amount that we all are comfortable spending on any item or service which gives us temporary feel good factor.
Now i want that instead of spending these 1000 rs on temporary possessions i want to pass on a legacy to my future generations so that they should remember me FOREVER.
Now if i say that i start putting this amount every month in an equity diversified SIP for the rest of my life & i somehow make an arrangement that ever after i die this amount continues to be invested monthly till 100 years in total !
Crazy it seems na !
but lets find out the results of this investment.
Monthly Investment : 1000 Rs
Tenure : 100 Years
Average Return Expected : 15 %
Total Amount Invested : 12 lacs
MATURITY AMOUNT ???????????????????
Any Guesses ?
!
!
!
!
!
!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
1014150,95,952/- Compounded Annually.
( One Kharab One Arab Forty one Crore Fifty lac Ninety Five thousand nine hundred & fifty two Rs )
Think !
Disclaimer : This is a hypothetical situation & not any persuasion in any form to do the thing.
Shri Om
Wealth Plannerz India
9463958158
Creating Meaningful Wealth
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