The Magic of Compounding: Meet India's Top Wealth Multipliers

Hello investors, today, I will tell you an old but still relevant story. You might have heard it. So, here it goes.

Once upon a time, a wise king lived, fond of playing chess.

One day, a clever peasant challenged the king to a game, with a unique wager. 

The peasant said, "If I win, I ask for just one grain of rice on the first square of the chessboard, two grains on the second square, four on the third, and so on, doubling the amount on each successive square until all 64 squares are filled."

The king, amused by the peasant's simple request, agreed to the wager, confident in his chess skills. 

Little did he know, the peasant had a plan that would demonstrate the power of compounding. The game began, and the peasant played skillfully, eventually winning the match.

Impressed by the peasant's strategy, the King prepared to fulfil his end of the bargain.

The servants start placing rice grains on the chessboard, doubling the amount on each successive square.

They place one grain on the first square. On the second, two grains. On the third, four grains. And so on, doubling the amount with each move.

As the servants progressed through the chessboard, the numbers grew exponentially. 

There were already 512 grains by the 10th square. By the 20th square, the number had grown to over a million. And by the 30th square, it was in the billions.

The king watched in amazement as the number of grains grew, doubling with each square. 

By the time they reached the 64th square, the total number of grains was a staggering 18,446,744,073,709,551,615 – more rice than the entire kingdom could produce in a lifetime.

The king realized that the peasant's simple request was a profound lesson in the power of compounding.

The magic of compounding allows your investments to grow exponentially, just as rice grains double with each square.

This story serves as a reminder to start your investment early, invest regularly, and allow the power of compounding to work its magic over the long term.

By harnessing the power of compounding, investors can build significant wealth and achieve their financial goals.

Just like the grains of rice on a chessboard, investments in mutual funds can grow significantly over time due to the power of compounding.

Based on NAV growth, I compiled an intriguing list of the top 50 wealth multiplier funds. Let me share the list of the top 10 funds with you.

These funds show how compounding can significantly multiply an initial investment over time.

For example, if an investor had invested Rs. 1 lakh in the Nippon India Growth Fund at its inception, it would now be worth over Rs. 4.11 crore.

These growth rates demonstrate the potential of mutual funds to create substantial wealth through disciplined investing and the power of compounding.

You can reach Swaraj Finpro and multiply your wealth similarly with India's top money multipliers!