Power of Compounding – Why it is not there in (Mutual Funds), Stock market?
The power of compounding exists in Mutual funds and in Stock Market is most people believe. But actually, this compounding interest benefit is not there in mutual funds. In addition, Many investors believing this wrong assumption and investing blindly in mutual funds, stock market. In this article, I will showcase why there is no Power of Compound interest in the stock market and equity mutual funds. What is Compounding Interest.?… Compounding interest means that you are getting interest on interest. Let’s say you have invested in Bank Fd Rs.1,00,000, the bank promised you to pay 6% compound interest every …