Time Value of Money in an Indian Context

What is Time Value of

Money?
Time value of money means that the value of money
changes over time due to inflation. Investing early can
help maximize your returns.
Why is Time Value of
Money Important in
India?
Time Value of Money means money's potential to grow over
time. In India, investing in a fixed deposit or a stock market can
double or triple your money in the future.
Fixed Deposits
Time value of money is the concept that money invested today is
worth more than the same amount in the future due to its earning
potential. Fixed deposits are a popular investment option in India,
where the interest rates can range from 4-7%. The longer the
investment period, the higher the interest earned. For example, if
you invest INR 100,000 in a fixed deposit for 5 years at an interest
rate of 5%, you will earn INR 28,000 in interest. However, if you
invest for 10 years, you will earn INR 61,000 in interest. This is
because the interest earned also earns interest over time, leading to
an increased return on investment.
Recurring Deposits
Recurring deposits are a great way to start investing.
Invest a fixed amount every month, earn interest, and
watch your money grow over time.
Public Provident Fund
Investing in PPF offers tax-free returns, compounding
interest, and a guaranteed rate of return. It's a popular
long-term savings option in India.
Equity Investments
Time Value of Money is the concept that a rupee today
is worth more than a rupee in the future due to its
earning potential. Invest in equity for long term wealth
creation and high returns.
Gold Investments
Time value of money is relevant in gold investments
as the value of gold changes over time. Invest in gold
ETFs, sovereign gold bonds or physical gold for long-
term wealth creation in India.
Thank you for considering the importance of time value of money in
the Indian context. Hope the examples were helpful!