Why is Investing important ? We Explain !

Investing means that you put your hard-earned money to work for you by side and create excess wealth for you in a long period of time along with your usual Income.

Investing

Be it a Youngster, Adult, Old aged person or Retired person- We all require some certain level of income or savings to live the life we need to & want to. For that very purpose a backup is crucial and that backup in monetary terms is called Investment money/ Wealth created over time / Savings.

Top 5 reasons to start Investing -

1. Higher Investment Returns
2. Beat Inflation
3. Reach your Financial Goals
4. Prepares us for tough Financial times
5. Helps to create legacy Wealth

Now, let us look into how Investing in different assets help us vs not Investing-

Benefits of Investing early

The above image explains-

• “Jack” starts to invest at Age of 25 years and invests 20,000 every year for 10 years and stops investing after age of 34.
• His friend “Jill” starts to invest at age 35 and invests for 30 Years.

Conclusion-

• Jack invests for just 10 years and gets 22,50,731 BUT Jill invests for 20 more years than Jack(Total 30 years) still gets only 20,21,461.
• Jack saved 20 years of time , investment money and still gets more money than Jill . That is the power of Investing.

To calculate your Investment amount and time to achieve your goals you can use this Calculator —

Compound Interest Calculator

Let us have a look at another example-

The above image explains-

• At Age of 30 years- to reach your goal of Rs 10 lacs , you have to invest Rs 7234 every year for next 35 years.
• At Age of 40years- to reach your goal of Rs 10 lacs , you have to invest Rs 15,811 every year for next 25years.

The later you start the difficult it becomes to achieve the kind of wealth that you would like to generate. This is because of the importance of Compounding Returns.

What are Compounding Returns?

The compound return is the rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses has on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms, meaning that the percentage number that is reported represents the annualized rate at which capital has compounded over time.

Basically, Fixed Deposit or PPF are examples of Simple Interest and equity related instruments like Stocks & Mutual Funds etc. are examples of Compound Interest . Let me show you how.

Power Of Investing early with Compounding

• You invest Rs 1 lakh today in Fixed Deposit and Interest Rate is 6% , so what you get is Rs 6000 as income every year .
• But if you buy a Company’s Share( One share is for RS 10,000)for Rs 1 lakh- what you get is 10 shares

1. If share price is 12000 at end of year then next year you will earn on 12000rs per share not just 10000rs per share. That is how compound interest works.

There are many more advantages of Investing early and we can help your money grow for you with less Risk & a Diversified Portfolio. So that you can focus on your work and leave the Investing portion of your life to us, because it is not that easy as it looks like.

To know more ,

Call/Message us on- 9711092212

or Email us at- dakshrustagi26@gmail.com

HAPPY INVESTING