The Power of Compounding #ILoveYou10K
Before we start our discussion in this article, perhaps you could take your time for a while to think what could you get with Rp 10.000,- in your daily life? A cup of coffee? 2 hours parking fee? 1 time toll fee?
All of them are correct, but do you know that Rp 10.000,- can also be used for investing? Yes, investing can now start as low as Rp 10.000,- and have you ever thought of something bigger that can result from Rp 10.000,-?
For example, if you invest once with the amount of Rp 10.000,- with return assumption of 10% within 5 to 10 years. At the end of year 5 to 10, your Rp 10.000,- could grow into approximately Rp 16.000,- to Rp 26.000,-. Perhaps you feel the amount is still small, however how much could you get if you start investing regularly on daily basis for the same period?
The Power of 10.000
Have you ever thought about The Power of 10.000 where you could earn more by only sparing Rp 10.000,- for regular investment?
Try imagining if you spare your Rp 10.000,- to be invested on daily basis into the mutual fund product of your choice for the same time period, 5 to 10 years. With the same return assumption of 10%* per annum, your total investment amount could become Rp 23,7 million to Rp 62,7 million by the end of year 5 and 10! If you invest for a longer period, such as 20 to 30 years, the total investment that you could get can be up to Rp 230 million and Rp 690 million at the end of 20 and 30 years. How cool that is!
To know the product list that offers minimum purchase of Rp 10.000,- you could log-in to Moduit application and select ‘Filter’ from ‘Product’ menu. You could then easily select the product and start investing.
Is it better to invest only in one product or variety of different products?
For you who are confused if it is better to invest only in one or variety of products, have you heard of the quote from Warren Buffet that says “Do not put all your eggs in one basket”?
Yes! From this quote, it could be concluded that it is better to invest in variety of products as compared to only in one product. Why? Simple, the reason is for risk diversification since the performance of each mutual fund product varies depending on the risk levels. Hence, by investing in variety of product, you could also diversify your risk!
Can you invest more than Rp 10.000,- per day?
The answer is: of course you can! You could invest starting from Rp 10.000,- up to any amount you like! Actually, the advised portion amount to be allocated for savings or investing is 10% of your income. However, if you could not spare that amount yet, don’t worry! You could first start your investing journey with the minimum amount of Rp 10.000,- and increase the investment amount periodically.
So, take your smartphone now, download and install Moduit application and delay your investment journey no more!
*The return of 10% is for example purpose only. Investment return will depend on the performance of your selected Mutual Fund products