Free bse nse stock tips on mobile by sms
Free bse nse stock tips on mobile by sms
Free Stock Market Trading Tips and Recommendations on Mobile by SMS and Free Wealth Management , Mutual Funds, Life Insurance, Bonds, Post Office Schemes and Small Savings
StocksCommoditiesMutual FundsInsuranceMembers AreaInvestor SchoolQuick Links
Free Wealth Management advice on Mutual Funds, Insurance, Bonds, Post Office Saving Schemes and Small Savings
Free Wealth Management advice on Mutual Funds, Insurance, Bonds, Post Office Saving Schemes and Small Savings
   

   
Free Wealth Management advice on Mutual Funds, Insurance, Bonds, Post Office Saving Schemes and Small Savings
Free bse nse stock tips on mobile by sms
MUTUAL FUNDS BASICS
Why Mutual Funds?
The Benefits of Mutual Funds
Types of Mutual Funds
The Power of Automatic Investing
The Magic Of Compounding
The Importance of Performance
Understanding Fees and Expenses
Selecting Funds for Your Portfolio
Redeeming Your Shares
Free Home Delivery of Mutual Fund Forms New!!
The Magic Of Compounding

Another way that your money grows in a mutual fund is through compound growth that results when you reinvest the income. If a fund pays you a dividend and you use the dividend to buy more shares, you'll earn even more the next time around; you'll receive dividends on your original investment as well as on the additional shares. Compounding can work wonders on the value of your investment, especially over long periods of time.

Take an initial investment of Rs.10,000 earning an average of 9% each year for 10 years and withdraw your earnings each year instead of reinvesting them. You'll have Rs.19,000 at the end of 10 years (Rs.10,000 initial investment + 10 payments of Rs.900). Take the same investment and leave the annual earnings in the account to compound, you'll have Rs.23,674, or nearly 25% more.

Compound growth also works dramatically if you invest on a regular basis. If you were to invest Rs.200 each month for 10 years (Rs.24,000 in all), earn an average of 9% per year and reinvest your earnings, you'd wind up with Rs.38,703.