Compounding is often called the eighth wonder of the world—because your money not only earns returns, but those returns also start earning further returns over time. For example, when you invest through SIP or lump sum, the returns you earn get added back to your investment, and this bigger amount then grows further. The longer you stay invested, the faster your wealth multiplies.
Start early, stay invested for longer period and let the compounding turn small investments into big wealth.
Frequently Asked Questions
-
1. What is compounding in simple terms?
Compounding means your money earns returns, and those returns also start earning further returns—helping your wealth grow faster over time.
-
2. Why is compounding important for investors?
The earlier you start and the longer you stay invested, the more powerful compounding becomes—turning even small investments into big wealth.
Compounding works best with time and discipline.
