What it is
When your money earns returns, and those returns also start earning returns, you get exponential growth instead of straight-line growth. That's compounding.
Why it matters
Most people underestimate it. Compounding turns small, boring monthly amounts into life-changing sums — but only if you give it time. Time is the secret ingredient, not income.
How to use it
- 01
Start investing as early as you can — even tiny amounts.
- 02
Be consistent. Monthly SIPs beat occasional big lumps.
- 03
Don't interrupt. Pulling out early breaks the compounding.
- 04
Reinvest returns instead of spending them.
In real life
₹5,000/month at 10% returns becomes about ₹11 lakh in 10 years — but ₹1.1 crore in 25 years. Most of that growth happens in the last 10 years. Time does the heavy lifting.