The Consequence of Delay in Investing - Franklin Templeton India

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Starting your financial investments early is always recommended, but wondering how to start investing? What is the importance of investing? Watch the video to find out how the power of compounding helps your investments grow over time and achieve goals that you've planned for in the future. The right time to invest in now!
A lot of investors wait a long time before investing because they’re afraid of risks or they just don’t have enough information about the real investment environment.They think the market is too volatile, and they’re waiting for it to stabilize. Whatever the reason, it leads to one big problem: Delay in investment.
What is the Power of Compounding?
Suppose your “friend” invests Rs. 10,000 a month for a period of 10 years. At the end of the 10 years, he would have invested 12 lakhs. With an assumed return of 15% p.a., your friend would have managed to accumulate Rs. 27.52 lakhs. You, on the other hand, were still waiting for the waves to go down but they never did!!! But seeing your friend’s money grow steadily, you got a little confident of stepping into the water. So you start investing but have lost 5 years. Now you’re trying to catch up, so you put double the amount every month for 5 years. You end up investing the same amount but at the end of 5 years you would have accumulated a little less than 18 lakhs. That is the importance of investing early.
Wondering how your friend benefited so much by just starting early? This concept is known as the “power of compounding.” The power of compounding allows for a small sum of money, invested over a longer period of time, to grow to an amount that is significantly larger. In other words, compounding is the interest you earn on your interest. You see, you’ve got to realize that the money accumulated depends not only on how much you invest, but more importantly – how long you invest. The bottom line is: it pays to start early, invest regularly, and stay invested!
Remember:
• The more you wait for investing, the more you lose
• Power of compounding leads to exponential loss with time
So don’t worry about how to start investing or waste your time watching the waves! Just take a dip! The sea has a lot in store for you!
Read up more about this here:
https://www.franklintempletonindia.com/templatedata/gw-content/article/data/content-international/en-in-retail/investor/beginners-guide-chapter7-_io04og31
We hope you enjoyed watching this video! Watch more, and we’ll help you learn about different investing concepts. You can also write to us with your feedback ([email protected])
View more such videos in the playlist Franklin Templeton Academy:
https://www.youtube.com/playlist?list=PLpDLpRd877mRvP2fuzG7Bby1cwuLQ6i3W
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