Power of Compounding: Compounding allows investments to grow substantially over a period of time as it involves earning returns not only on the initial amount of money (the principal) but also on the accumulated returns over a period of time. In other words, it is the returns earned on the principal and the accrued returns.
In this article, there is a list of large cap mutual funds that delivered good returns in the long term, unlocking the power of compounding. In compounding, the longer you invest, the exponentially larger your investment could become. Time is the most critical factor here.
Nippon India Large Cap Fund
Rs 1 lakh would have turned into Rs 4,40,384, with a 15.98 per cent CAGR in 10 years. The estimated returns would have been Rs 3,40,384.
ICICI Prudential Large Cap Fund
Rs 1 lakh would have turned into Rs 4,05,965, with a 15.04 per cent CAGR in 10 years. The estimated returns would have been Rs 3,05,965.
Rs 1 lakh would have turned into Rs 4,08,797, with a 15.12 per cent CAGR in 10 years. The estimated returns would have been Rs 3,08,797.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
