Just imagine…

• How much can you make in 26 years by just investing Rs.10,000/- initially in any of
  financial instruments ?Take a wild guess ???
  Let us look at the real example…

If you have subscribed in 100 shares of _____ company with a face value of Rs. 100/- in 1980…

• In 1981 company declared 1 : 1 bonus = you have 200 shares
• In 1985 company declared 1 : 1 bonus = you have 400 shares
• In 1986 company split the share to Rs. 10 = you have 4,000 shares
• In 1987 company declared 1 : 1 bonus = you have 8,000 shares
• In 1989 company declared 1 : 1 bonus = you have 16,000 shares
• In 1992 company declared 1 : 1 bonus = you have 32,000 shares
• In 1995 company declared 1 : 1 bonus = you have 64,000 shares
• In 1997 company declared 1 : 2 bonus = you have 1,92,000 shares
• In 1999 company split the share to Rs. 2 = you have 9,60,000 shares
• In 2004 company declared 1 : 2 bonus = you have 28,80,000 shares
• In 2005 company declared 1 : 1 bonus = you have 57,60,000 shares

At the end of 2005 …..........

• You have 57,60,000 shares of the companyAny guess about the company ? (Hint : Its an Indian company)
  Any guess about the present valuation ?

The result of ‘Power of Compounding’

Your present valuation is about

Rs. 200 Cr.+
&
The company is ‘WIPRO’

Other such examples ….....

CIPLA
Investment of Rs. 10,000/- in 1979 will fetch Rs. 95 cr.+

INFOSYS
Investment of Rs. 10,000/- in 1992 will fetch Rs. 1.5 cr.+

RANBAXY
Investment of Rs. 1,000/- in 1980 will fetch Rs. 1.9 cr.+