They both had a target of retiring at the age of 50. Let us understand this concept of compounding with a simple story of two friends - Shruti and Nisha, both aged 25. We see that due to compounding, Rs.1 lakh became Rs.1.25 lakh at the end of the second year.Īll you need to do is to stay invested for a longer period of time as it helps you to exponentially grow your investment corpus and generate wealth. Here, the money you invest gets reinvested or, in other words, gets compounded to generate exponential returns over the long term. It is the POWER OF COMPOUNDING which, according to the great Albert Einstein, is the 8th wonder of the world. It is the most powerful tool in the universe to grow your money exponentially. Wondering which is the eighth wonder of the world? No – it’s not a monument, neither any majestic human creation nor a natural scenic beauty.
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