💡 Did You Know? The Rule of 72

The Rule of 72 is a simple way to estimate how long it may take for money to double.

Formula: 72 ÷ Expected Rate of Return = Approximate Years to Double

For example: • At 6% return, money may double in about 12 years. • At 8% return, money may double in about 9 years. • At 12% return, money may double in about 6 years.

While the Rule of 72 is only a mathematical approximation, it highlights an important investing concept: the power of compounding. The longer investments remain invested, the greater the potential impact of compounding over time.

Remember, higher return expectations are generally associated with higher levels of risk. Investment decisions should always be aligned with your financial goals, risk appetite, and investment horizon.

Rajesh Kathpalia FINGuide Buddy AMFI Registered Mutual Fund & SIF Distributor ARN-257079

Disclaimer: The Rule of 72 is a mathematical approximation and is intended for educational purposes only. Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing.