The Rule of 72
The Rule of 72 is a simple calculation to estimate how long it takes to double your money given a specified rate of return. By dividing 72 by the annual rate of return, you get a rough estimate of how many years it will take for the initial investment to double.
72 ÷ Annual rate of return = Years for Investment to Double
|Annual Return (%)||5%||10%||15%||20%|
|Years to Double (#)||14 Years||7 Years||5 Years||4 Years|
The Rule of 72 is also handy for estimating impact of inflation. It will return the number of years until the initial value has been eroded in half, rather than doubling. You know how quickly you can lose purchasing power during periods of inflation.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision
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