Investing
Compounding
Compounding is earning returns on both your original investment and previously earned returns. It accelerates wealth growth over time.
Example
Rs 1 lakh growing at 12% CAGR becomes Rs 3.1 lakh in 10 years.
Related terms
CAGR
Compound Annual Growth Rate (CAGR) represents the mean annual growth rate of an investment over a specified period longer than one year.
SIP
Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It helps in rupee cost averaging and disciplined investing.