Personal Finance

Spend less than you earn, invest the rest

Novice

Mastery0%

Novice

Note. Education, not financial advice. Tax rules, regulations and product specifics change, for real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 06 of 19

settled

Compounding

Time × return × consistency. Time matters more than the other two.

Definition

The process by which returns earned in earlier periods themselves earn returns in later periods, so that a portfolio's growth curve accelerates over time rather than rising in a straight line.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.