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Investment: Create a way to earn money through compound interest rate, it helps in making the future better..

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Compound interest is also very important for investors. Whether you are borrowing money or investing, compound interest plays an important role in shaping your financial future. If you understand how money can grow over time through compound interest, then your financial success is certain. In a recent NSE podcast, Nimesh Shah and Vivek La of Money Pathshala discussed. Understanding compound interest makes big words less important. Trending Videos Remaining Time -0:48 The process of investing can be complex, sometimes full of uncertainties and jargon. It can scare a common man. To deal with this financial situation, a kind of understanding and strategy is needed. Understand the mathematics of earning from compound interest in this way Compound interest means earning from interest. For example, you invested Rs 100 in a mutual fund scheme and the next year it became Rs 110. If you continue this investment, then you will get a profit on the 10 rupees you have earned, that is, the investment will become 110 rupees.

This facility is not available in bank FDs because the interest rates are fixed there. Therefore, invest in such instruments where the rates are not fixed and you get profit again on the profit. Inflation remains a matter of concern for investors, but this is not a problem that cannot be solved. The solution to inflation is to invest in profitable businesses. Failure to invest will reduce purchasing power with inflation.

Volatility is an opportunity
A major aspect of investment is to deal with market fluctuations. Volatility mustn't be another name for risk. It is an opportunity rather than a risk. Market fluctuations can be disturbing in the short term. If you are a long-term investor, you will not worry. In the future, the earnings of the country and companies will increase. Stock prices follow this. For those who can withstand the shocks of volatility, investing for ten years or more can give satisfactory results.

Market returns up to 13% in a decade
In the last decade (since 2013), the Indian stock market has given an average return of 11-13%. This is more than the country's growth rate of 10%. Short-term fluctuations in the market are common, but long-term investors should not panic. Successful investors are those who maintain investments for a long period and do not panic when the market falls.

Balanced Advantage and Multi-Asset Funds are better
The Balanced Advantage product is designed for those who want returns similar to equity with low volatility. The fund's strategy includes investing in equity during market decline and increasing investment in fixed income when the market is expensive. Its equity investment is kept between 30-80% of the total fund.

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