New Delhi : Building wealth through mutual funds does not always need a huge sum of money.

Even small and regular investments can grow considerably over a long period if you remain consistent. The key to this growth is compounding, where your earnings begin generating more earnings, creating a snowball effect.

For first-time investors, understanding compounding can appear tricky, but tools like an online compound interest calculator make it easy. By using a calculator, you can view the potential of your investments, plan your financial goals well, and remain motivated to invest periodically. Let's explore how you can harness this power effectively.

Five ways to harness the power of compounding with an online calculator

Understanding how the compounding effect can grow your investments might seem complicated, but a compound interest calculator makes it simple to see the real potential of your money.

Here's how you can use it to make the most of your mutual fund investments:

Visualise growth over time

An online compound interest calculator helps you see your investments in action. For example, even a modest Systematic Investment Plan (SIP) of ₹2,000 per month can grow to a considerable corpus over 10, 15, or 20 years, based on the expected returns.

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