What about mutual fund in two years? | Power of compounding and mutual funds | Mutual fund with an example | how to understand mutual funds performance

 

The Mutual fund is totally based on investment even our dreams also depends on investment 

"if we save today will be batter tomorrow"

Mutual Funds will always give some gain according to Stock Market stock market is generator of profit for Mutual funds.

Mutual fund is very useful for the person who want to do invest in stock market but he has not much time to look every day or not possible to look in between 9:15am to 3:30pm they should really invest in mutual fund.

In my opinion you really want to de invest that's why you reading this So please don't take these steps too late If you made investment of 1000 per of month at the starting of your age 20-25 for 20 years when you will be of 40-45 at that time you have 2.4 lac of your real investment and if the interest rate was 10 then in a year, your interest will 1200 on 12000 now you have 13200 base value of a year.

 and for next year your interest made by 13200 fro 2nd year your interest of 10% will be 1320 and total you will get is 13200+1320= 14520 and for 3rd year your interest rate will be according to last year growth 14520 and after 18 Years you will get 7.59 Lac and your investment was of 2.4 Lac of 20 years.

The power of compounding-

  Let's take a another example your salary is 45,000 and your cut from your salary is of 20,000 for essential needs and 7,000 for some insurance 3,000 for normal spend now you saved 15,000 for every month and you wanna invest your 15,000 with good interest rate then you decided to invest in Stock Market but you don't have time because of your office.

Then someone give you advice that why you go to investment for Mutual fund because it provide good interest rate.

So you stated invest with 12% of your interest rate for a year and you want to invest your money for 15 years in a first year your investment will be 1,80,000 and your interest will be 21,600 your total is 2,01,600. for next 2nd year your interest will be make to your 2,01,600 and it will be 24,192 and total will be 2,25,792. and further years your interest value will be added to your investment and after 15 years your over all investment will be 27,00,000 your real value will be of 74,94,000 after 15 years.

So it is a power of investment. If you delaying in investment you will be regret in future. 

I give you a calculator Link that you can calculate your savings - https://www.mutualfundssahihai.com/en/calculators