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Compound interest is one of the fundamental principles that may influence how your money grows over time. It refers to the gradual accumulation of mutual fund investment returns when both your original amount and the interest earned are reinvested. This repeated cycle may help you build value steadily, especially when you stay invested for longer periods.

Understanding how compound interest works may support more informed and suitable long-term financial planning.

What is compound interest?

Compound interest refers to growth that builds upon itself. Instead of earning interest only on your initial mutual fund investment amount, the accumulated interest is also considered. For instance, if you invest Rs. 100 at an annual compound interest rate, the return earned in the f

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