Investment: This is the real power of investment, this is how 10,000 rupees became 8 lakhs..

Investing requires patience. If you invest, you have to invest for a long time. It is not a matter of a few months or years. It is a matter of decades, and if you understand this scale of investment, then you can earn many times the profit. For example, an investment of Rs 10,100 made in the Equity Linked Savings Scheme (ELSS) of ICICI Prudential Mutual Fund in 1999 has now become Rs 7.98 lakh.

In the world of investment, this feeling of returns or results not being as expected often manifests as disappointment. This disappointment motivates investors to try to know the 'time of the market'. The process of determining 'time of the market' involves estimating the possible rise or fall in the price of a security and buying or selling the security accordingly.

Became a millionaire by investing Rs 10,100
This is currently a topic of discussion on the social media platform X. Recently, Piramal Finance Managing Director Jayaram Sridharan posted a post on LinkedIn. In this post, he explained how timing the market can benefit you. How sometimes investing more time in the market can be a better way than trying to time the market. He explained how his investment of Rs 10,100 turned into Rs 7.9 lakh in about 25 years.

Sreedharan wrote in his post that soon after joining the job in 1998, he decided to start the investment journey. Sridharan said that he bought his first investment in Equity Linked Savings Scheme (ELSS) units in 1999 for Rs 10,100. In the last 25 years, the value of his investment has increased to Rs 7,90,457.8. It is worth noting that Sridharan had bought units of the ICICI Prudential ELSS Tax Saver Growth Scheme.

Got more returns than the stock market
The investment made by Sridharan has grown at a compound annual growth rate of 19.05 percent. That is, a total profit of 7726 percent has been received. During the same period, the annual compound return rate i.e., CAGR, of the Sensex of 30 stocks has been 12.15 percent, and the CAGR of the Nifty 50 index has been about 12.48 percent. Nifty-50 and Sensex have given a profit of up to 2,500 percent.

Emerging markets usually see rapid growth. Major indices have also grown significantly in the last twenty-five years. However, looking at Sridharan's investment, we can understand that to make the most of this growth, it is important to remain invested in the market. The biggest advantage of ELSS is that it also helps you save tax.

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