Albert Einstein quoted – “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it. Compound interest is the most powerful force in the universe.”
In Mutual Funds, Compounding is a long-term investment strategy and allows you to increase your returns phenomenally by reinvesting the principal amount and the profits made on your previous investments. The best way to take advantage of compounding is to start saving and investing wisely as early as possible. The earlier you start investing, the greater will be the power of compounding.