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Strategies for Professional Growth · Quiz 2 · 16 Mar 2025 · January 2025 term

Question 14: [Investment Strategy] Jayandra and Karan both were softw…

Question 14

+1 markOne correct option

[Investment Strategy] Jayandra and Karan both were software engineers and earned a decent salary.
Jayandra started investing in the Sensex index at the age of 25. Each month, he invested ₹5000, accumulating a total investment of ₹26,80,000. By the time he stopped investing, his portfolio had grown to an impressive ₹20,75,17,690.
On the other hand, Karan began investing at the age of 35 and continued till 01-02-2024 in the same Sensex index. Despite making the same monthly investment as Jayandra, his total investment amounted to ₹20,80,000. However, the return he received was significantly lower at ₹3,16,41,127.
[Investment Strategy] What was the primary reason for Jayandra accumulating significantly higher wealth than Karan?

  1. A

    Jayandra invested in different stocks

  2. B

    Jayandra invested a larger amount each month

  3. C

    Jayandra started investing earlier and benefited from power of compounding

  4. D

    Jayandra timed the market better

Show answer

Correct answer

  • C

    Jayandra started investing earlier and benefited from power of compounding

See the whole paperTake it as a mock test

Question 14 of 21 in the IIT Madras BS Strategies for Professional Growth (SPG) Quiz 2 paper sat on 16 Mar 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 16 Mar 2025). It carries 1 mark.

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