What is Compounding?
Compounding (also called compound interest) — Earning returns on both your original investment and the returns it has already generated — growth that accelerates over time.
In simple terms
Reinvesting returns lets ₹1 lakh grow far more over 20 years than 10.
Why Compounding matters when you invest
Understanding compounding helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Compounding — frequently asked questions
What is Compounding?
Earning returns on both your original investment and the returns it has already generated — growth that accelerates over time.
What does Compounding mean in the stock market?
Earning returns on both your original investment and the returns it has already generated — growth that accelerates over time. Reinvesting returns lets ₹1 lakh grow far more over 20 years than 10.
Can you give an example of Compounding?
Reinvesting returns lets ₹1 lakh grow far more over 20 years than 10.
Put it into practice — open a free account.
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