Glossary

Compounding

Earning returns on past returns, not just on what you put in.

Example

₹2,000 a month for 30 years is ₹7.2 lakh put in; at an assumed 12% it could grow to about ₹61.6 lakh.

Learn more in Compounding: why starting early matters (3 min).

See also: SIP, CAGR

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