QUIZTest your understanding - Applying the Power of Compounding to Asset Allocation
Choose the correct answer
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Power of compounding works best when the investment is kept for
Which of the following asset classes has the highest potential for generating superior returns by applying the power of compounding?
For the power of compounding to work in the equity asset class, the key thing to remember is to
If Shilpa invests ₹50,000 in an infrastructure bond for 3 years with 9% interest, compounded annually and invests ₹1,000 as a SIP each month in an equity diversified mutual fund for 4 years, earning 11% return. Leveraging the power of compounding, which asset class would generate higher returns?
If your target asset allocation has gone haywire: