Investing & funds
What is Compounding?
Also called: Compound interest
Hinglish mein padhein: Compounding kya hoti hai?
Compounding means earning returns on your past returns. Over long periods it makes money grow faster and faster.
At 12% a year money roughly doubles every six years (the rule of 72: 72 ÷ 12 = 6).
Starting early matters more than investing large amounts late.