How systematic, disciplined investing and the power of compounding can turn a modest annual contribution into a substantial corpus over 20 years.
Tejas Shah
Proprietor of Silicon One and Silicon Systems, AMFI-registered Mutual Fund Distributor since 2004, based in Vadodara.
How does one get sustained high returns? The answer is simple: invest systematically over time, and let compounding do the work. This approach suits every kind of investor, from cautious to aggressive — the low-risk investor just takes longer to build the same kitty.
Comparing PPF, average equity funds, and the Sensex TRI
Using an annual investment of Rs. 1.5 lakh (the Section 80C limit) and 20 years of actual historical data across PPF, average equity mutual fund returns, and the Sensex Total Return Index (which includes dividends), the wealth-creation gap between fixed-return and equity-linked instruments becomes clear over a full market cycle — including its booms, scams and corrections.
The sooner you start saving, the more you'll have for retirement — and ELSS lets you combine that discipline with a tax deduction under Section 80C.
#mutual funds#investing
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