Einstein called it the eighth wonder! 1 lakh turned into more than 1.5 crores.

New Delhi. The great scientist Albert Einstein, along with inventing for science, also gave investors a magical way to make money. You can understand his surprise that Einstein’s method turned just Rs 1 lakh into Rs 1.53 crore in 25 years. The investor who invested only 1 lakh rupees in this fund in 1998 by adopting this method of this great scientist has today become the owner of more than 1.5 crore rupees.

Actually, we are talking about compound interest i.e. compound interest. Albert Einstein said that if you invest in an option that has the benefit of compounding, your money will magically grow. He called composition as the eighth wonder. You will see this recognition in Aditya Birla Sun Life Flexi Cap Fund. If you see this demonstration, you will also say that it is magic.

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How did the miracle work?
Actually, Aditya Birla Sun Life Flexi Cap Fund was launched in August 1998. Since then, the fund has given an impressive return of 21.73% every year and has grown by Rs 1 lakh to Rs 1.53 crore in 25 years and 7 months. Imagine if a person had invested only Rs 1 lakh, today his amount has multiplied more than 150 times.

How does this magic work?
Compound interest means that the interest earned on your investment will be added to the principal amount over the next year and then you will get interest on the entire amount. This way, every year your interest is added to the principal amount and then you get interest on the entire amount. In this way, your money grows a lot in a short period of time.

Understand from example: Suppose you have invested Rs 1 lakh in a product, on which you have earned 10% interest ie Rs 10 thousand. Next year, this interest of Rs 10 thousand will be added to your principal amount and the total amount will be Rs 1.10 lakh. Now it will get 10 percent i.e. 11 thousand rupees interest. This 11 thousand will also be added to your principal amount and the total amount will be Rs 1.21 lakh next year. After that there will be interest of 10% i.e. 12.1 thousand rupees on this principal amount and this interest will be added to the principal amount next year. Thus, due to compound interest, your money grows very quickly.

Tags: Albert Einstein, Invest money, Investment Tips, mutual fund