POWER OF LONG TERM INVESTING

• 2.5 crore invested today @ 7.2% in bank FD will double every 10 years. Same 2.5 crore invested in equity today is assumed to double every 5 years. (Given the historic returns of the Nifty Index @ 12%-15%). In this rate 2.5 crores in next 40 years will become 40 crores in Bank FD, whereas the same 2.5 crore in Equity (Nifty 50) will become 640 Crores.

• 1 lac invested in Axis Bank FD in 2002 would have more than doubled @ 8.50% in 10 years i.e 2.5 Lacs. In the next 10 years it would have doubled @ 7.2% becoming 5lacs today. But the same 1 lac invested in Axis Bank shares in 2002, without any churning would have become more than 1 crore today.