Always invest for the long-term!

It is very important to invest for the long-term in any high-quality asset to reap the benefits of compounding. This can be exemplified by earnings picture of BSE Sensex & BSE Midcap Index over the last 10 years. From FY13 to FY23, Sensex earnings compounded at 9 percent, while BSE Midcap earnings grew at 12 percent. This might look small but even a one percentage over longer periods can have significant difference in wealth creation. So, Rs 1,00,000 invested in the Sensex would have delivered Rs 2,36,736 at the rate of 9 percent per annum, while compounding at 12 percent would have fetched Rs 3,10,584 for the same amount invested.