2 Or 66, Which one is better
While Investing do not concentrate on Return on Investment, focus on duration of the Investment.
Lets undertand with example
Investment- ₹1 lakh
Duration - 5 years
Rate of Return- 15%
- On Maturity amount will be ard ₹ 2 lakhs (Rutrun is 2 Times over Investment)
Investment- ₹1 lakh
Duration - 30 years
Rate of Return- 15%
- On Maturity amount will be ard ₹ 66 lakhs
(Rutrun is 66 Times over Investment but Rate of Return is same)
It happens due to 'Power of Compouding Interest'
Try to keep Money invested for Long term, compounding will definitely help.
