Power of compounding: How long will it take for Rs 5 lakh to turn into Rs 20 lakh? Check out it with this investment rule
The Rule of 144 helps estimate how long it will take for Rs 5 lakh to grow into Rs 20 lakh, leveraging the power of compounding, regular contributions and long-term investment discipline.
Turning Rs 5 lakh into Rs 20 lakh may seem like a daunting task, but with the power of compounding and strategic investment, it’s achievable. The Rule of 144 is a simple formula that can help you estimate how long it will take for your investment to quadruple based on annual returns. By staying disciplined, making regular contributions, and focusing on long-term goals, you can accelerate the growth of your investment and reduce the impact of market volatility.
Understanding the Power of Compounding
The Importance of Long-Term Investment
Using the Rule of 144
Formula for Time Calculation
How Your Rs 5 Lakh Can Turn into Rs 20 Lakh
By applying the Rule of 144, you can estimate how long it will take for your investment to quadruple. The formula, Years to Quadruple = 144 ÷ Annual Return Rate (%), highlights the impact of higher returns and consistent contributions. For instance, with a 12% annual return, your Rs 5 lakh could grow to Rs 20 lakh in approximately 12 years. Patience, discipline, and leveraging compounding are essential to achieving this financial milestone.