Glossary › Compound Interest
What is Compound Interest?
Interest earned on both your original principal and the interest already accumulated.
Compound interest means your returns earn returns. The more frequently it compounds (annually, quarterly, monthly) and the longer the horizon, the larger the effect — which is why starting early matters so much in investing.
Example
₹1,00,000 at 10% compounded annually for 20 years becomes about ₹6,72,750.