What is Power of Compounding? — Meaning, Definition & Example
Definition
The power of compounding refers to how investments grow exponentially over time when returns are reinvested. The earlier you start investing, the more time your money has to compound. Even small regular investments can create massive wealth over decades.
₹5,000/month SIP for 30 years at 12% = ₹1.76 crore. Starting just 10 years later (20 years), the same SIP gives only ₹50 lakh — you miss ₹1.26 crore by delaying.
🇮🇳 Power of Compounding in Hindi / हिंदी में
कंपाउंडिंग की शक्ति — कंपाउंडिंग की शक्ति से तात्पर्य है कि जब रिटर्न पुनर्निवेश किया जाता है तो समय के साथ निवेश तेजी से बढ़ता है। जितनी जल्दी शुरू करें, उतना अधिक कंपाउंडिंग का लाभ।
Power of Compounding (Hinglish) — Power of compounding ka matlab hai ki jab returns reinvest hote hain toh investments exponentially grow karti hain. Jitna jaldi start karo utna zyada paisa banta hai.