Ever wished that your money could keep growing, without all the effort? Or are you worried that your day-to-day expenses will leave you with no savings at all for your long-term needs?
Lucky for you, there’s a simple way to put your money to work for you which helps you in the short term as well as in the longer run. It’s called the compounding and can help you exponentially increase your savings.
How does Compounding Work?
Compounding is the process of generating more returns on an asset’s reinvested earnings. Simply put, when you invest in a Mutual Fund you earn a certain amount of returns. With Compounding, your returns are reinvested and hence keep your wealth growing steadily. For younger investors, it is the greatest investing option available, and the main incentive for starting as early as possible.