The power of compounding is a financial concept that highlights the ability of money to grow over time. It plays a significant role in various investment avenues like mutual funds, and the stock market. Compound interest is the key to this phenomenon. The power of compounding in mutual funds and investment in mutual funds via SIPs can lead to substantial wealth creation in the long term. The formula for compounding is straightforward – your money multiplies. The benefit of compound interest lies in its ability to amplify gains, making it a fundamental aspect of CAGR in the stock market. Over time, even small investments can lead to significant wealth accumulation in the long term.
What Is the Power of Compounding?
