Power of Compounding via SIP: Rs 11,111 monthly investment for 15 years or Rs 22,222 for 10 years, which should work better?
Power of Compounding: An SIP or systematic investment plan is a popular way of investing in mutual fund schemes of choice, as it enables investors to direct their cash towards a desired equity-related scheme gradually. In this article, let's look at two scenarios to learn about the role time plays when it comes to compounding.
A Systematic Investment Plan (SIP) is a popular way to invest in mutual funds, as it allows investors to park their surplus cash steadily in their mutual fund scheme of choice. This enables an investor to not only stay committed to their long-term investment strategy but also to maximise the benefit of compounding.
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What is compounding?

Let's compare two examples to understand compounding better

SIP Return Estimates | Which one will you choose?

Scenario 1: Rs 11,111 monthly SIP for 15 years

Scenario 1 estimated return explained

Scenario 2: Rs 22,222 monthly SIP for 10 years

Scenario 2 estimated return explained

SIP & Compounding | What is compounding and how does it work?

SIP & Compounding
