Two friends, Lata and Neha , started investing in mutual funds at different ages. When Lata was aged 25, she began investing Rs 5,000 each month, and Neha did the same when she was aged 35. Assuming an average annual return of 12%, here’s what their investment portfolios would look like at age 60:
- By age 60, Lata’s investment portfolio will have a total invested amount of Rs. 21 lakhs, and the value of her portfolio will be Rs 3.22 crores
- Neha’s investment portfolio at age 60 will have a total invested amount of Rs. 15 lakhs, and the value of her portfolio would be Rs 93.94 lakh.
As you can see, Lata’s portfolio grew significantly more because she started investing earlier than Neha. The advantage of investing early is that it gives
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