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PPFAS Asset Management Private Limited
www.amc.ppfas.com
[Investment Manager to PPFAS Mutual Fund]
Investor Education Initiative
From PPFAS Mutual Fund
The Magic
of Compounding
The Magic of Compounding
Albert Einstein the renowned scientist had said...
Compound interest is the eighth
wonder of the world.
He who understands it,
earns it.....
he who doesn’t… pays it.
Luckily for us, we do not need the intelligence of Albert Einstein to understand the power of compound
interest!
Theconceptisso.......simple that it is taught in high school!
Basically what Compound Interest means is that when you invest for long periods of time, you start earning
interestoninterest!!
Take a simple example!
ŸYouinvest`100atarateofreturnof10%peryear
ŸInthefirstyearyouwillgetareturnof`10
ŸInthesecondyearyouwillgetareturnof`11...sincethesuminvestedhasGROWNto`110andsoon.
ŸIntheyear10...youwillearn`23.6andin10yearsyour`100willgrowto` 259!!
Isitnotsimplebutamazing?
Youallknowthis............right?Sowhatismypoint?
Just imagine this, you are a young 20 year old... and on JUST one day...
insteadofhavingyourfancybrandnamecoffeefor` 125!
You opted for the neighbourhood Udipi coffee at ` 25!
And the ` 100 saved on JUST one day invested at 15% per year for the
next40yearstillretirement.Howmuchwouldyouhavesaved?
` 26,786!!
Stillwantthatfancycoffee?
There is a simple sure-shot formula to get rich. Start saving and investing early,
compound regularly at reasonable rates of return... and live a long life.
PPFAS Mutual Fund Investor Education Initiative
www.amc.ppfas.com
Page 1 of 1
PPFAS Long Term Value Fund
(An Open Ended Equity Scheme)
A scheme designed for genuine
Long Term Investors!
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The magic of compounding - Investment Lesson

  • 1. PPFAS Asset Management Private Limited www.amc.ppfas.com [Investment Manager to PPFAS Mutual Fund] Investor Education Initiative From PPFAS Mutual Fund The Magic of Compounding
  • 2. The Magic of Compounding Albert Einstein the renowned scientist had said... Compound interest is the eighth wonder of the world. He who understands it, earns it..... he who doesn’t… pays it. Luckily for us, we do not need the intelligence of Albert Einstein to understand the power of compound interest! Theconceptisso.......simple that it is taught in high school! Basically what Compound Interest means is that when you invest for long periods of time, you start earning interestoninterest!! Take a simple example! ŸYouinvest`100atarateofreturnof10%peryear ŸInthefirstyearyouwillgetareturnof`10 ŸInthesecondyearyouwillgetareturnof`11...sincethesuminvestedhasGROWNto`110andsoon. ŸIntheyear10...youwillearn`23.6andin10yearsyour`100willgrowto` 259!! Isitnotsimplebutamazing? Youallknowthis............right?Sowhatismypoint? Just imagine this, you are a young 20 year old... and on JUST one day... insteadofhavingyourfancybrandnamecoffeefor` 125! You opted for the neighbourhood Udipi coffee at ` 25! And the ` 100 saved on JUST one day invested at 15% per year for the next40yearstillretirement.Howmuchwouldyouhavesaved? ` 26,786!! Stillwantthatfancycoffee? There is a simple sure-shot formula to get rich. Start saving and investing early, compound regularly at reasonable rates of return... and live a long life. PPFAS Mutual Fund Investor Education Initiative www.amc.ppfas.com Page 1 of 1
  • 3. PPFAS Long Term Value Fund (An Open Ended Equity Scheme) A scheme designed for genuine Long Term Investors! Advertisement