A successful investor habit No. 2-Start early for investment
A successful investor starts early for his/her investments. The power of compound interest can be easily seen by investing for a long period of time. Lets understand effect of compounding with an example. Lets Sunil and Anil are two good friends. Sunil knows the importance of compounding , so he started investment as early as he started his first job with a little amount. Anil was very ignorant about his investments. He started making investment after 10 years with respect to Sunil, but with a double amount. Scenerio of Sunil's investment: Amount invested : Rs 1000/monthly Number of years Sunil invested Rs 1000 per month: 10 years After 10 years Sunil stopped his investment but he did not made any withdrawal for next 20 years i.e. Total Number of years Sunil wanted to be invested for : 30 years . Annual rate of return assumed: 12% Sunil's return: At the end of 30 years, Sunil's invested Rs 1.20 Lakhs ( Rs 1000*12 months*10 years = Rs 1.20 lakhs) and ...