Everybody wants to create wealth but some people create real wealth. Becuase some people are the focus to grow wealth other just daydreamers. We required the regular contribution of our income towards wealth creation fund so that we can achieve financial freedom. But lack of knowledge and guidance only a few achieve those goals.
So how can we create wealth in long run?. Today, I want to explain a great topic called, Wealth creation formula. why this is wealth creation formula because of the power of compounding interest.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”― Albert Einstein
SIP:- Systematic Investment Plan is the easiest way to investment
The concept of SIP is very simple and easy due to the need for less fund required to start the investment compared to one-time investment with a large amount. So it is very affordable in India to develop investment habits. But a lot of people not aware till now, some are aware but not taken seriously.
Benefits of SIP
Power of compounding
Compound interest provide much higher return compared to one-time investment
Tax saving investment in under section 80
- Long in a period of investment is 3 years
Lowest login period
Compare to other investment instruments Elss have an only login period of 3 years
2x higher return on Rd
Compare to Fds and another traditional investment ELSS return is much higher.