n NISM Certifications
XVII NISM Series XVII
Medium

Starting savings early increases contributions due to the power of compounding, leading to a larger retirement corpus.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Higher returns guaranteed due to long period of investment

  2. Contributions due to compounding will be higher

    Correct answer

  3. C

    Contributions due to savings will be higher

  4. D

    Less time will be required to accumulate the corpus if funds are invested in growth securities

Why this is the answer

Early investments benefit from compounding, increasing the final corpus.

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