magic of compoundingcompound interest is one of the most important concepts to understand when managing your finances it is the simplest yet the most powerful concept and has a multiplier effect on your investments it helps your investments to grow at an exponential rate than arithmetic linear rate earning a slightly higher rate of return can make a massive difference to the amount of money you end up withcompounding is a longterm investing strategy it takes place when the returns or interest generated on the principal amount in the first period is added back to the principal amount in order to calculate the interest for the following periods thus it creates a chain reaction by generating returns on the returns as long as your money remains invested in the financial instrumentanother most important ingredient to wealth creation recipe is time compounding and time goes hand in handmutual funds are designed to make the most out of the power of compounding the whole concept of systematic investment plan sip is to take advantage of the compounding effect while you invest a small sum of money at predefined intervals the invested amount grows exponentially over a long span of timeso what are you waiting for let this magic work towards building and growing your wealth to truly benefit from compounding start early invest consistently and stay invested for the longest time possible it is not only about how much money you put in but also how much time you have to let your money work for youclick here to know morean investor education awareness initiativeinvestors should deal only with registered mutual funds to be verified on sebi website under intermediariesmarket infrastructure institutions refer wwwltfscom for details on completing a onetime kyc know your customer process change of details like address phone number etc and change of bank details etc for complaints redressal either visit wwwltfscom or sebis website wwwscoresgovindisclaimer this information is for general information only and does not have regard to particular needs of any specific person who may receive this information lt investment management limited the asset management company of lt mutual fund or any of its associates does not guaranteeindicate any returnsand shall not be held liable for any loss expenses charges incurred by the recipient the recipient should consult their legal tax and financial advisors before investing recipient of this information should understand that statements made herein regarding future prospects may not be realized or achievedmutual fund investments are subject to market risks read all scheme related documents carefullydisclaimer content produced by lt mutual fund