Compounding: Eighth Wonder of the World!!!

Saving money regularly and investing them into relatively safer financial instruments yielding moderate returns can work wonders over long period of time. Also Napoleon Hill the author of Think and Grow Rich says, “Make your money work so hard for you that you do not have to work for it.”

The power of compounding is such that it helps you to reach your financial goals. Compound growth refers to earning returns on your returns or similarly, earning interest on interest.

The power of compounding is very beneficial to long term investors.

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Mutual Funds were made to make investing easy, so investors do not have to be burdened with picking the individual Stocks. When it comes to Compounding, do not trust your intuition, you have no idea how powerful it is.

Wealth cannot be created overnight it needs to be nurtured with care. Compounding teaches that we do not have to invest huge but regular savings can increase your wealth. As it is rightly said, “Little Drops of Water Make the Mighty Ocean.”

 One can make regular savings by investing in SIP as it is very convenient mode of investment and it supports the power of compounding very well.

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