Which Fund is Better? 11 Times Return in 11 Years or 70 Times Return in 19 Years
For more info: Say hi on WhatsApp When comparing mutual fund performance, many investors focus only on the rate of return. However, an equally important factor in wealth creation is time . To understand this concept clearly, let us compare two funds that both generate an impressive 25% annual return( Just example) Fund A: 11 Times Return in 11 Years Suppose you invest ₹1 lakh in a fund that delivers 25% CAGR for 11 years. With the power of compounding, your investment grows nearly 11 times, and your ₹1 lakh turns into approximately ₹11 lakh. This is a great return and many investors would feel satisfied with such growth in a little over a decade. Fund B: 70 Times Return in 19 Years Now consider another fund that also generates the same 25% CAGR, but the investment stays in the market for 19 years instead of 11 years. Here, the magic of compounding becomes truly powerful. The same ₹1 lakh investment grows nearly 70 times, reaching about ₹70 lakh. What Does This Compari...