The best way to grow your money is to make regular and systematic investments.
In most peoples dreaming is the easy part. It's the fulfilment of the dream that demands diligence. How much money will you need to achieve your goal, say;
1.Education fund your child,
2.Build a substantial retirement expenses, or
3.Finance an expensive vacation?
What is the amount you will need to invest every year to get there?
To know this, you should be able to estimate how much the invested money will grow in a fixed time period. Can you amass this sizeable amount? To answer these questions and resolve your dilemma, Blue Ocean Revolution Team will help you make these calculations.
Let us consider how to estimate the money you will need to invest periodically to build the desired corpus. The concept of periodic investments is based on the theory of compounding, according to which, the interest earned on the principal is reinvested. When the interest is calculated at any given interval, the reinvested interest too earns an interest. Suppose that you invest Rm. 10,000 in Unit Trust Fund for two years, which pays 8% interest rate compounded annually.
At the end of the first year, the investment grows to Rm. 10,800, and at the end of second year, you will have Rm 11,664. However, if the bank was paying simple interest, you would have earned only Rm 11,600. The additional Rm 64 that you have received is due to the effect of compounding, wherein the interest of Rm 800 earned in the first year is included in the principal when the interest for the second year is computed.
Your money needs to be invested at regular intervals (monthly, quarterly or yearly) for a set time period to reach the desired financial goal.
In most peoples dreaming is the easy part. It's the fulfilment of the dream that demands diligence. How much money will you need to achieve your goal, say;
1.Education fund your child,
2.Build a substantial retirement expenses, or
3.Finance an expensive vacation?
Rome is not builds overnight, In Investment you need TIME and CAPITAL |
To know this, you should be able to estimate how much the invested money will grow in a fixed time period. Can you amass this sizeable amount? To answer these questions and resolve your dilemma, Blue Ocean Revolution Team will help you make these calculations.
Let us consider how to estimate the money you will need to invest periodically to build the desired corpus. The concept of periodic investments is based on the theory of compounding, according to which, the interest earned on the principal is reinvested. When the interest is calculated at any given interval, the reinvested interest too earns an interest. Suppose that you invest Rm. 10,000 in Unit Trust Fund for two years, which pays 8% interest rate compounded annually.
At the end of the first year, the investment grows to Rm. 10,800, and at the end of second year, you will have Rm 11,664. However, if the bank was paying simple interest, you would have earned only Rm 11,600. The additional Rm 64 that you have received is due to the effect of compounding, wherein the interest of Rm 800 earned in the first year is included in the principal when the interest for the second year is computed.
Your money needs to be invested at regular intervals (monthly, quarterly or yearly) for a set time period to reach the desired financial goal.
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