Rule 72

Dear investors,

Here is a rule called rule 72. Supppose you have 100k and you put in FD with rate 4 percent per annum ,then it takes 18 years ( 72 divided by 4) to double your money. Suppose you put the same amount of money in public mutual( say regular saving fund) with annual return of 10 % then it takes about 7 years( 72 divided by 10) for you to get 200k back.

You may ask me , with the present economic conditions, can public mutual give you 10 % per annum? The answer is yes because we practise dollar cost averaging. That is we invest more in the downturn market to bring down your cost price and in ten years time an average return of 10 % per annum is achievable. Thanks.