1. For Information contact us at contact@wallsofindia.con or call us at 96504 59955
K2/1, FF, DLF Phase – II, Gurgaon – 122008, Haryana, India
Seen Seven Wonders. Know the “Eighth Wonder of the World”
In the words of Albert Einstein “Compounding is the eighth wonder of the world, one who understands
Earns it and who doesn’t Pays it. Compounding your money with monthly investments is the wiser way
of building wealth for long term needs. It is very important to know how compounding will work your
way. Let’s see.
 Suppose a bank deposit says earn 9% p.a compounded semi annually, which means bank will
give interest twice and the earned rate would be 9.20% because you get interest on interest.
Now you get, higher the percentage you earn, better the compounding works for you.
 The best way to build wealth is to invest regularly probably every month to nullify the volatility
and reap the benefit of high yield through Systematic Investment Plans (SIP’s) in mutual funds.
Let’s understand better with the snapshot:-
Particulars Bank FD Debt Schemes
Equity mutual
fund
Tenure 25 25 25
Yield 9% 11% 15%
Monthly inv. -5000 -5000 -5000
You Paid -Rs. 15,00,000 -Rs. 15,00,000 -Rs. 15,00,000
Final amount Rs. 56,05,610 Rs. 78,80,667 Rs. 1,62,17,648
Additional income for Bank FD Rs. 22,75,057 Rs. 1,06,12,038
Equity investments have always been biggest wealth creators of all time which has even beaten best guy
imagination.
Stocks Rs.1000 invested is now Annual return
Infosys 29 Lakhs 48.98%
Lupin 11.70 Lakhs 80.17%
Wipro 8.75 Lakhs 40.31%
Motherson Sumi 7.75 Lakhs 55.82%
Shree cement 6.44 Lakhs 49.82%
Kotak Mahindra 6.08 lakhs 58.07%
Emami 5.44 Lakhs 41.90%
Vakrangee 5.25 Lakhs 56.42%
Eicher motors 4.52 Lakhs 54.76%
Aurbindo Pharma 4.52 Lakhs 43.28%
 No working individual can put in the required time and research to identify the individual stocks
to invest. The ideal route to reap the benefit of the Bull Run in the economy is to route your
money through Mutual funds SIP’s.
 They are market professionals who put in required time and effort to select quality stocks which
can give superior returns in future.
If one would have
sold his Cycle and
bought Infosys, he
would have bought
a BMW for himself.
Rs. 25,00,000 Rs. 1,25,00,000
Bank
FD
Debt
Schemes
Equity
mutu…

2. For Information contact us at contact@wallsofindia.con or call us at 96504 59955
K2/1, FF, DLF Phase – II, Gurgaon – 122008, Haryana, India
 Let’s glance through some good quality Mutual funds and their return chart in last 10 years.
Mutual funds
Fund name 10 years return Money made
HDFC Top 200 20.54% Rs. 38,93,662
BSL Frontline equity fund 21.14% Rs. 40,47,461
ICICI Value discovery 24.01% Rs. 48,85,825
One should target to start SIP’s with different objectives and build on it. Following are some examples to
accumulate wealth for different purposes:-
1. Child higher education – Have long term approach, invest in good quality large cap mutual fund.
2. Retirement Planning – Start a SIP in a Large and Midcap fund.
3. Vacation Planning – Invest in Debt scheme.
4. Contingency fund – Start a SIP in a liquid fund, which fetches higher interest than savings
account.
 Starting with Rs.50 thousand in 1st
year and regularly increasing the investment amount by mere
10% every year compounding at 15% can make you Rs.2.20 crore in 25 years on a conservative
thinking. This is the real power of compounding.
Year Savings per year Total value
1 Rs. 50,000 Rs. 50,000
2 Rs. 55,000 Rs. 1,12,500
3 Rs. 60,500 Rs. 1,89,875
24 Rs. 4,47,715 Rs. 1,87,75,444
25 Rs. 4,92,487 Rs. 2,20,84,247
Compounding money and building Wealth is the ability to fully experience life. Do what you love and love
what you do, money will follow in pursuit of you.
********
Lack of money is root
of all evil. So plan well
and spend less.
Ten thousand every month
for ten years would have
made you richer by this
amount, had you invested in
these funds.
HOW TO START
For any information and questions regarding investments in mutual funds and stocks ,
contact Abhishek Mittal , CFA +91 991.117.1977 or at amittal@wallsofindia.com