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Power of Compounding in Mutual fund
The Power of Compounding in Mutual Funds
Compounding is a powerful force in mutual fund investing, where returns are reinvested to generate even higher returns over time. As your mutual fund earns interest, that interest is reinvested, creating a snowball effect that can significantly grow your wealth. With consistent returns and time on your side, the compounding effect can lead to substantial growth, making your investment much larger than the initial amount. For example, an investment of ₹1,00,000 with a 10% annual return can grow to ₹1,10,000 in the first year, ₹1,21,000 in the second year, and so on, leading to a significant corpus over the long term, illustrating the immense power of compounding in mutual fund investing.
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Uploaded At Aug 12, 2024 ^^
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RYD date created : 2024-08-13T07:32:26.551674Z
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