What is Compounding?
Earning returns on your returns — the snowball effect of investing.
Example
Start at 25: ₹5,000/month for 10 years, then stop. By 60: ~₹2.8 crore (at 12%).
Start at 35: ₹5,000/month for 25 years. By 60: ~₹94 lakh (at 12%).
Person A invested ₹6L total, Person B invested ₹15L. Yet A has 3x more. That is compounding.
Try our SIP Calculator with your numbers.
Hypothetical returns for illustration. Not guaranteed.