Power of Compounding in Stock Market | Power of Compounding Explained In Hindi | SIP | Josh Money

Josh Talks Stock Market
Josh Talks Stock Market
146.3 هزار بار بازدید - 3 سال پیش - Power of Compounding in Stock
Power of Compounding in Stock Market | Power of Compounding Explained In Hindi | SIP | Josh Money
Welcome to Josh Money!
In this video of Josh Money, Aastha Sethi is talking about the most important concept of Money i.e. Power of Compounding. To many, the power of compounding seems like a difficult topic. But it is not so. We’ll help you understand this in a simple manner. The knowledge of how power of compounding works can not only enable you to earn a higher return on your investments and savings but also help you to plan for your life’s important milestones. The power of compounding can be understood better with the “snowball effect,” wherein you can see how a small ball of snow builds upon itself to form a much bigger snowball as it rolls down a slope.
In the same way, the power of compounding too helps increase your savings by accumulating more interest (or capital gains) on the money that was previously earned as interest. In other words, power of compounding leads to what is known as ‘exponential growth,’ wherein both the increasing interest and your account balances at an increasing rate. Power of compounding is essentially an act of ‘adding interest on interest,’ i.e. the amount of money you invest will generate earnings from both the initial principal amount and the accrued earnings from preceding compounding periods. Eventually, thus, power of compounding helps grow your wealth over time.
There are several investment options in India, offered by leading banks and financial institutions, which credit compound interest on your invested money. Usually, these investment plans have a definitive compounding period, such as annual, monthly, or even daily, helping you leverage the power of compounding as per your needs and requirements. There are different types of investment, such as fixed deposits and mutual funds, which reinvest the earnings on your money over time, from either interest or capital gains, to help generate additional earnings.
In this video, we tried to clear the concept of Power of Compounding by using of Calculator. We have discussed about compounding of Money with the Interest Rate of Equity Market or Share Market and again we discussed the compounding of money with the interest rate of Fixed Deposit.
If you want to understand the concept of Power of Compounding in detail, watch this video till last.
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3 سال پیش در تاریخ 1400/09/22 منتشر شده است.
146,345 بـار بازدید شده
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