Mathematics & Economics of Slow and steady investment

Many has asked me if Stock Market can really generate wealth when we talked about recession or rally or any other terms. By talking to many people, I felt that lots of investors (specially traders) are turning pessimistic about Indian Economy. Well, we might now do good for short term but I still have faith.

Just have a look whats banks are making for you.

Let us start with Rs 1 only.
If you keeps on growning money with just rate of return, say, 10%, for 50 years.
Note that atleast banks are giving you roughly 10% return.
then,
Basic formula suggest,
Amount after 50 years = [1+1*(1+10/100)^50] = 118.394

means Rs 1 will be Rs 118.394

Is it small?
Start up with Rs 10 lkhs, you can earn Rs 11.839 crs for your children.

Even if you go with parallel to banks.
You can be happy as long you think about mathematical part.
Money management required when it comes on the ground of economics.
Say, what about inflation which can eat money year on year basis with even 4-5%.

Moral of this study is, what looks easy (i.e. 10% annual return), may not remains easy in long run.
If you go with little intellegent way,
then,
yes, Stock Market can surely make you Millionaire.