हिंदी में यह आलेख देखने के लिए, यहां क्लिक करें
MF Investment over longer duration helps in capital building faster. To understand this aspect, see the chart below:
Mr X start investing Rs 5000 per month and he continued with the same for next 30 years. Mr Y realizes the importance of investment 10 years later, so to recover the lost period, he starts investing Rs 15000 per month and he continued with the same for next 20 years.
Assuming market returns of 12% and 15% respectively, you can see the accumulation in the chart above. Even though Mr Y invests monthly 3 times the money invested by Mr X, but still he lags in accumulation after 20 years, because he lost the initial time.
Since Mr X started investing early, his outgo in the later year will be smaller and he can enjoy with rest of his monthly earnings. While Mr Y has to invest huge amount to achieve financial goals in later part of his life even though he has other priorities in families.
See another example of impact of starting investment early:
Someone starting at the age of 30 need to invest only Rs 1776 per month to accumulate Rs 1 Cr at the retirement age of 60 yrs, while another person starting at the age of 40 need to invest Rs 7535 per month to accumulate the same Rs 1 Cr at the retirement age.
Moral of the story: Start Investing early to achieve financial freedom.
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