Compounding is a term extensively used in mutual funds. It s a phenomenon by which small amounts invested on a regular basis grow into a significant sum over time. The interest earned during a particular compounding period will in turn earn interest in the next compounding period. aaa
SIP calculator: If an investor invests ₹15,000 per month 15 years maintaining annual step up of 15%, he may expect ₹2 crore maturity amount, says15 x 15 x 15 rule of mutual funds