Power of Compounding

The power of compounding in counter-intuitive and best understood by making the actual mathematical calculations. Don’t worry, once you have grasped what is happening, it is easy to apply.

REMEMBER: Earlier you start, the longer you hold, the larger the returns.

There are many online tools which help in calculating the power of compounding. But for more flexibility, open Excel and try it out yourself.

Disclaimer: This is a theoretical understanding of the power of compounding. The actual results may vary according to market fluctuations and interest rates. This is not investment advice.

Disclaimer: The contents of this page do not constitute investment advice. Please contact your authorised investment advisor before making any investments or acting upon the contents of this page.