It is said that the best time to plant a tree is twenty years ago; the second best time is today. That is true for investing too. It’s never too early to start, it’s never too late either. Let’s take a simple example. Let’s say Sheetal and Malini—two friends of the same age (25 years)—can spare Rs. 25000 every year. Sheetal starts investing right away while Malini waits till the age of 32 when she starts investing. Assuming a modest return of 8% per annum, when both complete 50 years of age, Malini will have 11.2 lacs while Sheetal’s investment will have grown to 21.6 lacs – almost double of Malini’s. That’s the power of compounding at work!