Rule of 70 shows the effect of Inflation on Money. The Below Table illustrates in how many years Rs50000/- becomes Rs25000/- in terms of purchasing Power of Money.
Rate of Inflation | No. of Years |
6% | 11.67 yrs |
7% | 10.00 Yrs |
8% | 8.75 Yrs |
So, in 20 Yrs at 7% Inflation, Rs50000/- becomes Rs12500/-. That's How Fast the erosion of Wealth Takes Place if its not Invested in the right Instruments.
Rules | Time Period | Rate@4% | Rate@6% | Rate@8% | Rate@ 10% | Rate@ 12% | Rate@ 14% |
Rule of 72 | Years to Double Investment | 18.00 yrs | 12.00 yrs | 9.00 yrs | 7.20 yrs | 6.00 yrs | 5.14 yrs |
Rule of 114 | Years to Triple Investment | 28.50 yrs | 19.00 yrs | 14.25 yrs | 11.40 yrs | 9.50 yrs | 8.14 yrs |
Rule of 144 | Years to Quadruple Investment | 36.00 yrs | 24.00 yrs | 18.00 yrs | 14.40 yrs | 12.00 yrs | 10.30 yrs |
We at The Alpha Funds Identify the Right Mutual Fund Schemes as per you Risk Profile and investment horizon. The Investment in the Appropriate Product and the Magic of Compounding helps you beat Inflation and Grow your money.