Here's how you can multiply your wealth by 5 times!!


OK, now that you understand equities a little better, let’s get back to our engineer friend’s investments and see why we made the outrageous claim. 
When he started out in April 2008, he put a total of 40,000 in a top-rated equity mutual fund. Every subsequent year, accounting for a 15% increase in his income, he put in more and more money in that equity mutual fund. You can see in the table below how much each of those amounts have grown to today.

Date of Investment

Amount Invested (Rs)Value in October 2015* (Rs)Multiplication Factor
April 200840,000175,9264.4x
April 200946,000251,4215.5x
April 201052,900160,4743.0x
April 201160,835159,8872.6x
April 201269,960156,6162.2x
April 201380,454180,5142.2x
April 201492,522163,3481.8x
April 2015106,401107,4321.0x
As you can notice, Equity rewards Patience. The investments in 2008 and 2009 have increased by more than four times. This is what we meant when we said that equities can grow your wealth. If you stick to it long enough, your rewards could go up by 5 times.

Here's how you can multiply your wealth by 5 times!! Here's how you can multiply your wealth by 5 times!! Reviewed by Admin :) on August 25, 2016 Rating: 5

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