The Power of Compounding
Say you put in $100,000/Rs1,00,000 as an investment expecting a return of 15% p.a. In equity investments a CAGR of 15% is highly possible. Do you know how much returns you will get after 5, 10, 15, 20, 25, 30 years? See the chart below.
Milestones Table
| Year | Amount (₹) |
|---|---|
| Start | 1,00,000 |
| 5th year | 2,01,136 |
| 10th year | 4,04,556 |
| 15th year | 8,13,706 |
| 20th year | 16,36,654 |
| 25th year | 32,91,895 |
| 30th year | 66,21,177 |
At 15% CAGR, ₹1,00,000 compounds to about ₹66,21,177 in 30 years. That’s the power of time in the market.
Compounding Chart
