ET Mutual Funds Explainer: Want to accumulate a corpus with monthly SIP of Rs 15,000? Use Rule 15*15*30

Compounding refers to the process of growing wealth by earning “interest on interest.” In practical terms, investors contribute a certain amount regularly, and the interest earned is added back to the principal, thereby generating more interest in the subsequent periods. Compounding refers to the process of growing wealth by earning “interest on interest.” In practical terms, investors contribute a certain amount regularly, and the interest earned is added back to the principal, thereby generating more interest in the subsequent periods.  Economic Times