Let the money grows with your child

Planning for a child future is a first responsibility for every parents. If you follow the simple procedure as described below your kid will be a millionaire at the age of 16. There is no magics or gimmicks in that. This is where the power of  compounding plays its role. As the years grows the principal of your investment and the interest will grow rapidly at a rocket pace.

So lets get in to the point ,

Invest 2 lakhs when your child is at the age of 1 in any of the 5  top equity diversified Mutual Fund.
Just let that investment to grow for 16 years. When your kid turns to 16 you will see the miracle by yourself.

The 2 lakhs you invested today will accumulate to 13 lakhs assuming 12% annual return in 16 years.
For the past 5 years Indian Mutual Funds has given atleast 18% annual returns. Even some of the funds has given 40% annually.

This is the power of compounding. Check out this article http://imakemillion.blogspot.com/2011/08/how-to-earn-crore-power-of-compounding.html and see how its works

See the top performing mutual funds in India in 2011(http://imakemillion.blogspot.com/2011/08/top-5-india-mutual-fund-pick-for-2011.html)

So invest today and reap the benefits in the future.

How to become a crorepati - Power of Compounding

Hi Dudes,

How to become a crorepati?  I want to make 1 crore?

If this is the question often strike your mind then you are at the right place.

Invest early is the golden mantra for earn a crore.

Wanna know... Check out below.

Akila starts saving when she turns 25 and invests Rs 50,000 every year. Assuming that on this she earns a return of 10% every year, at the end of ten years, Akila has been able to accumulate Rs 8.76 lakh. Now, she stops investing 50,000 per year after 10 years and does not touch the money

she lets the Rs 8.76 lakh grow and assuming that it continues to earn a return of 10% every year,s he would have been able to accumulate around Rs 95 lakh by the time she turns 60. So the Rs 5 lakh (Rs 50,000 x 10 years) he had invested in the first ten years has grown to Rs 95 lakh: even though Akila stopped investing Rs 50,000 every year after the first ten years.


At the age of 35 Kamal starts investing Rs 50,000 every year. He invests this amount every year till he turns 60, i.e. for 25 years. Assuming he also earns a return of 10% per year on his investments. At the end Kamal would have managed to accumulate Rs 54.1 lakh.

Even after investing Rs 50,000 regularly for 25 years, Kamal has managed to accumulate Rs 54.1 lakh, which is around Rs 41 lakh less in comparison to Akila. Now Akila had invested only Rs 5 lakh over the ten years she invested. In comparison, Kamal over the 25 years has invested Rs 12.5 lakh (Rs 50,000 x 25 years).

Even by investing two-and-a-half times more than Akila, Kamal has managed to build a corpus which is 43% less. This happened because Akila started investing earlier. This allowed the money to compound for a greater period of time.


 So strongest advice is to begin investing early and set up a regular plan to invest a set amount per month.