NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)

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.

Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.

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