Learning Center

Why Invest

No matter what your goals are, it is wise to invest. Here are some basic reasons to invest now:
(1) to fight the effects of inflation on money, and
(2) to enjoy the magic of compounding.


Outpacing Inflation
Inflation is the overall rate at which prices for goods and services increase. Over time, inflation can erode the value of your money - reduce your purchasing power. To gauge the impact of inflation, simply consider what PKR 100 was worth 10 years ago, compared to what PKR 100 will buy you today.


Effect of inflation on PKR 100,000 Cost of 5 KG bag of rice


Most people fail to realize or understand that money simply loses value over time. For example, if you had PKR 100,000 in cash ten years ago, the value of that money in terms of purchasing power today would only be PKR 57,300.

Enjoy the Power of Compounding
Compounding is the process of generating investment earnings on previous investments and earnings. As your investment account grows, you realize earnings on a constantly increasing balance. Compounding works best the sooner you start investing. Over time, compounding can be a powerful force, turning modest investments into sizeable sums.


Growth of PKR 100,000 @ 8% compounded annually


Remember: Most people fail to realize the effects of compounding. For example, if you had invested PKR 100,000 ten years ago, and earned 8% interest, it would have grown to PKR 215,892.


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