How to reap the benefits of compounding?
How to reap the benefits of compounding? Invest Early – If start investing at a young age like Warren Buffet, then you can really enjoy the power of compounding. Even small amounts can become substantial over a longer time frame. A significant portion of Buffet’s net worth increased in last 10-15 years only even though he was investing as early as an 11-year-old. Invest Regularly – Even investments in small amounts like SIP can do wonders to your net worth over longer time horizon due to compounding. Choose Right Asset Classes – It's important to invest in right assets classes which regularly beat inflation every year. Depending on one’s risk profile & investment making capacity, one should hire an expert to choose proper asset allocation. Show Patience – Don’t panic when market falls substantially. If you are invested in high quality asset classes, then all you need to do is show some patience to tide over bear markets. Stay invested unless something is fundamentally wrong with your chosen asset class. Patience & Compounding is a marriage made in heaven!

















