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The power of compounding

Compounding earnings can skyrocket small investments. We tell you how here

The power of compounding

Sachin Tendulkar started playing cricket at the age of 16. At 29, he has already amassed over 12,000 runs in one-day matches. On the other hand, Robin Singh joined the Indian team at the age of 25 and has retired now. He could manage only 2,336 runs in one-day matches. Before you begin to wonder if we have lost our marbles, let us tell you what we are trying to arrive at here. The idea is simple: the earlier you start investing, the more likely it is that you would end up making more money. While runs scored in cricket don't multiply automatically, investment does. Surprised? Well, the fundamental principle of compounding helps you realise this.


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