Dear friends,
We always try to bring some exciting information for you. This time we are bringing the Magic of Compunding.
Suppose you invest Rs 50,000 today at the age of 30 years and your annual return from Stock market is 40%. At the age of 50 years, your Rs 50000 will turn into more than 4 crores. We have put calculations below for your reference.
| 1st year | 70000 |
| 2nd year | 98000 |
| 3rd year | 137200 |
| 4th year | 192080 |
| 5th year | 268912 |
| 6th year | 376477 |
| 7th year | 527068 |
| 8th year | 737895 |
| 9th year | 1033052 |
| 10th year | 1446273 |
| 11th year | 2024783 |
| 12th year | 2834696 |
| 13th year | 3968574 |
| 14th year | 5556003 |
| 15th year | 7778405 |
| 16th year | 10889767 |
| 17th year | 15245673 |
| 18th year | 21343943 |
| 19th year | 29881520 |
| 20th year | 41834128 |
You can see that after 20th year, your initial investment of 50,000 has turned into Rs. 4,18,34,128.
What we are trying to tell you is that if you are not too greedy in stock market than you can definitely make atleast 40% annualized return on an average and can retire at the age of 50 with good bank balance.
In this cycle of 20 years you will have lots of Ups and Downs but if you stick to good stocks and take profit time to time and invest properly, this is least achievable and can be more as well.
-Netstock
