Compounding
When returns earn returns of their own, money grows faster over time. At 10% a year, ₹1 lakh grows to about ₹2.6 lakh in ten years and about ₹6.7 lakh in twenty. Time in the market does much of the work, which is why starting early matters more than starting big.
CAGR: comparing growth fairly
The compound annual growth rate is the steady yearly rate that would take an investment from its starting value to its ending value. It lets you compare investments held for different lengths of time. It hides the ups and downs along the way, so look at those too.
Diversification
Different investments rise and fall at different times. Spreading money across shares of different industries, bonds and deposits, and perhaps some gold, means one bad year in one area doesn’t sink everything. Owning ten companies in the same industry is less diversified than it looks.
Asset allocation and rebalancing
Decide roughly what share of your money goes into each kind of investment, based on your goals and how much decline you can bear. Over time, markets push those shares away from your plan; moving money back now and then (rebalancing) keeps your risk where you chose it.
How i-wise helps
Your dashboard and Wealth Profile show how your money is spread across kinds of investments, currencies and holdings, and the CAGR calculator works out growth rates for you. See your wealth in one place.
General information for education, not investment, tax or financial advice. Rules, rates and limits change: check the official sources before acting, and consider a SEBI-registered investment adviser for advice on your own situation.