Power of Compounding: How much time will it take for your investment of Rs 5,00,000 to turn into Rs 15,00,000? Find out with this rule
Discover the power of compounding to grow your wealth. Learn how the Rule of 114 can help calculate the time needed to triple your investment for a secure financial future.
Compounding is a powerful wealth-building tool, especially when combined with disciplined, consistent investments. By contributing a portion of your monthly income, adjusted annually, you can create a substantial retirement fund by age 50. The Rule of 114 provides a quick calculation to estimate how long it will take your money to triple based on the expected rate of return. Whether your income is Rs 25,000, Rs 40,000, or Rs 50,000, harness the compounding effect to achieve financial security and a comfortable retirement.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
Compounding as a Wealth-Building Tool
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Compounding is key to growing wealth, especially with regular, systematic investments.
- Investing even 10% of your monthly income and increasing it by 5% annually can lead to a significant retirement fund by age 50.
- This strategy supports financial security and comfortable post-retirement living.
Compounding is key to growing wealth, especially with regular, systematic investments.
What is the Rule of 114?
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The Rule of 114 is a quick way to estimate the time needed for an investment to triple.
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It simplifies calculating growth potential based on a specific rate of return.
The Rule of 114 is a quick way to estimate the time needed for an investment to triple.
It simplifies calculating growth potential based on a specific rate of return.
Formula for Tripling Your Investment
Tripling Time (years) = 114 / Expected Rate of Return
Example Calculation
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For a 10% annual return: Tripling Time = 114 / 10 = 11.4 years
For a 10% annual return: Tripling Time = 114 / 10 = 11.4 years
Higher Rate of Return
Faster tripling of the investment.
How much time will it take your Rs 50,0000 to turn into 15,00,000?
Using the Rule of 114: Calculate the approximate years required for Rs 5,00,000 to triple to Rs 15,00,000
Formula used
Tripling Time = 114 / Expected Rate of Return