Business

‘This is financial suicide…’, CA warned about investment, ignoring compound interest would be dangerous

By Samira Vishwas
  • The role of compound interest in investment
  • What does CA say?
  • What to consider while investing money in stock market

Are you also in the race to get rich quick”font-weight: 400;”> has warned about this. They say this is a mistake that can cost millions of rupees in the long run. They also advise on investments.

In your post, Nitin Kaushik to investors Advises on compound interest. Ignoring compounding can be costly, he says. In a post on social media platform ‘X’, he said that ignoring compounding is a kind of slow financial suicide. For this it is through SIP (SIP) give the example of investing in mutual funds.

Every month Rs. 10,000 SIP or once a year lump sum of Rs 1.2 lakh? 25 years of data will tell who is the real winner?

Big losses for investors

Nitin Kaushik explained that many people do not continue to invest or wait for the right time, which leads to huge losses. Money either lies around or is spent without planning. He explained the significant benefits of small investments with a simple example:

  • Let’s say someone earns Rs. 3000 SIP launched
  • They continue this for 15 years and get 12% annual return
  • After 15 years, the total investment amount will be Rs 5.40 lakh, but the total fund will be more than Rs 15 lakh.

The important point here is that a large part of the final amount, i.e. the total fund, is not the actual investment, but the compounding (return) on that investment.

Forget being a millionaire, become a 10,00,00,000 owner now! How much should you do in SIP to fulfill your dream in 15 years? Read in detail

People miss great opportunities

As Nitin Kaushik explains in his post, most people waste time looking for ‘hot’ stocks or waiting for big opportunities, which don’t come often. He said that this leads to lack of consistency in investment and people get caught up in the fluctuations of the market and exit at the right time. This, in turn, misses a significant opportunity to raise large funds.

Good long term returns

Nitin Kaushik said in his post that getting rich doesn’t require complicated strategies. Regular investments in index funds or simple mutual funds can yield good returns in the long run. Kaushik concludes his article by pointing out that almost two-thirds of the final amount comes from returns alone, and this shows how harmful it is to keep money idle.

Note: Investments are subject to market risks. If you want to invest in this, consult a certified investment advisor first. for any profit or loss of your kind Navarashtra.com will not be responsible.

Samira Vishwas 781 posts 0 comments
You might also like More from author

Comments are closed.