In this case, your fixed deposits will turn your annual investable income into $ in 30 years time. (Not really a lot is it?)
- Unit Trusts Now let's calculate the returns for Unit Trusts.
The Table shows the returns you can get from Unit Trust investments. The left column is the average annual returns of your Unit trust in percentage terms. The top row is the number of years you invest in that unit trust.
In your case,if you had invested your annual investable funds in a unit trust that gives you 15% annual return over 30 years, your amount invested will become
Surprised by the number? No, there's no mistake. And yes, you are not going blind. If you invest a one-time annual amount, this is the amount of money that you will have at the end of 30 years.
If you can afford to invest the same amount every year for the next 30 years, you will be getting this lump sum amount on year 31, 32, 33 and so on until year 60!
Power of Compounding This is the power of compounding returns, which means that each year's returns, earns you returns on the following year. Compare this with your fixed deposits and you will realize how much you are losing by keeping your money in fixed deposits.
For a comprehensize list of unit trusts that meet the yearly average return critieria that you are looking for, please use our Fund Selector
