Power of Compounding in Mutual Funds

Ishika Mittal

Abstract: Compounding can make things appear to be larger than they really are. This effect can arise when returns resulting from an event are compounded over a long holding-period. With compound interest, the interest that you earn increases with the increase in your investment (monthly/quarterly/semi-annual/or annual investment plus the interest that you are earning on this investment). This calculator will help you calculate the worth of your investment after a set number of monthly investments or even a single, initial investment, based on the interest accrued on the invested amount. This paper aims to know the Power of Compounding in Mutual Funds.

Keywords: Compounding, effect, interest, calculator, investment