The Power of Compounding.

How much I stop myself from not speaking on finance in this health blog,I am not able to do so.This is because I have always felt that Health and Money goes hand in hand.First all the persons run after the money and destroy their health,and then use the same money to regain their health.So,instead of running after money,a person should start investing,and start investing early.He should not think about investing big in early stages,just 10% of  his income will suffice the  purpose.And he should not be a regular investor,but rather an intelligent investor, and should invest in Equities rather than in Fixed deposits.Because in fixed deposits  ultimately the value of your money will become less as the interest you will be getting on the FDs will be much lower than the current prevailing rate of inflation.And without your knowing,your money is being stolen from under your nose.So the best way to deal with this problem is to invest in equities in an intelligent manner.Just start small,check the water,and when you are accustomed,statt investing big.

It  is not a question at what age you should start investing.You should start investing as soon as you start earning.Initially,when your income is small,start with investing small,And as and when your income increases,start investing big. With the big advancement in medical profession,a persons life expectancy has increased and you dont know how long he is expected to live.About 40-50 years back,people were afraid to die,and nowadays the people are afraid that they don’t run out of the money.So,when you start investing early in equities,you would have build a big corpus earning you a dividend income and simultaneously raising the value of your holdings,the compounding effect of which is just unimaginable and unthinkable.And if you do it right you are definitely going to beat the inflation,never afraid of being run out of the money and live happily forever.


So, to reap the benefits of Compounding, you have to start early.But if you think you are late,you can always increase the amount to be invested and there you are, reaching your targets. And secondly you can also guide your children the power of compounding and help them in starting early.

It is always better to look out for stocks of the industry that has just started to gain momentum. Speaking for India,stocks dealing in Solar energy, renewable energy , electric vehicles and electric batteries are the best bet for the next 10 years.

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