Investment of Rs.2500 p.m. converts into Rs. 1.5 Cr.
If you start investment in mutual funds with just Rs 5,000 p.m. and if it fetches return of 12% p.a.
This is how your wealth will be
|After||You will have Rs.|
|5 years||4.3 lakhs|
|10 years||12 lakhs|
|15 years||25 lakhs|
|20 years||48 lakhs|
|25 years||90 lakhs|
|30 years||1.6 CRORES|
|35 years||2.9 CRORES|
So if you start investing with a meager amount of Rs.5,000 at the age of 25 years and continue that till the age of 60 (general retirement age), your total investment of Rs 21 lakhs in 35 years would turn into Rs 2.9 crores.
Equity is the biggest example that gives magical return through power of compounding.
The early you enter more will be benefit, as real magic of compounding is seen in long run after 20-25 years.