moneypurse

  Best Long Term Stocks to Buy now in India 2022   How to Invest in Best Stocks for Long Term Investors are often advised to invest in  stocks for the long term  so as to reap benefits of compounded growth. Power of compounding  is an important concept one needs to understand to really appreciate the benefits of long term investing. Compounding is similar to a multiplier effect since the interest that is earned by the initial capital also earns an interest, the value of the investment grows at a multiplicative rate rather than an additive rate. The higher the rate of return, the steeper the curve of growth and wealth creation. To give an example, an investment of just ₹1 lakh in year 1 at 10%, invested for 20 years can compound to ₹6.72 lakh giving a phenomenal return of 672% on capital. Companies run with the objective of primarily earning profits and they strive continuously to grow these profits further. However, in the process it is the various strategies an...