Key Takeaway
Equity funds at 12% return grow ₹10 lakh to ₹96 lakh in 20 years, while FDs at 7% grow the same amount to only ₹39 lakh. The ₹57 lakh gap is entirely due to compounding differences across asset classes.
18,00,000
50,45,760
41,79,243
30,51,890
23,69,752
Compounding Growth Curve Projections
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Frequently Asked Questions
Does 2% higher return really matter?
Over long periods, enormously. ₹1 Lakh invested at 10% for 25 years becomes ₹10.8 Lakhs. At 12%, it becomes ₹17 Lakhs , nearly 60% more! Small differences in return rates compound into massive differences over time.
How do I compare different investment options?
Always compare using CAGR (not absolute returns) over the same time period. Account for taxes, fees, and inflation. Use this tool to visualize how different return rates compound over your specific investment horizon.
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