Base Effect

The amount that you invest is very important in getting a return. eg. A gets 100% return on his investment and B gets 50% return during the same time period of investment. On the outset A seems to have gained more . But the amount invested also matters. If A had invested Rs 1000 and B invested 1 lakh. A's gain is Rs 1000 and B's gain is 50,000.
So, we can call this the 'Base effect'. Having a decent investment base is very critical to make a impact. Many may not be able to accumulate huge money for investments. So , its always better to keep growing your investment base slowly and steadily. Systematic investment plans like RD and SIP would help the investors build a strong investment base over a period of time.
Little drops make a big ocean. Small amounts can lead to a huge investment base. Happy Investing.
SIP is the best way to create wealth.

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