Savings
Mutual Funds
The following table shows the effect of compounding on your savings. Depending on the rate of interest your savings earn (left column) and the number of years you maintain that investment (top row) you can view the amount that you will receive at the end of that period.
Power of Compounding
The forward compounder is a very powerful utility. Let us understand its utility with examples.
Example 1: Suppose your current total investments are Rs. 100,000 and you do not intend to do any future monthly investments. Using the forward compounder tells you that if your investments are generating 12% every year, your investments will be worth Rs. 5,47,360 in fifteen years. That's almost 4.5 times more.
Example 2: Suppose your current total investments are Rs. 100,000, you invest Rs. 1,000 every month for the next fifteen years. If your investments are generating 12% every year, then the forward compounder helps you calculate what your investments will be worth in fifteen years - Rs. 10,46,937!
