What is the rule of compounding in investment?

QuestionsWhat is the rule of compounding in investment?
Priya Vishwas asked 1 month ago
   
3 Answers
Deepak Goyal answered 1 month ago
Compounding is the process of earning interest on the principal invested. Many investment professionals believe that investments with a high rate of return and compound interest can produce a high amount of wealth.  
Akshaj Singh answered 1 month ago
Compounding is the process of earning interest on previously earned interest. It is one of the most powerful strategies you can use to make money in an investment portfolio. Let's say you decide to invest $100 per month in a particular product with an annual rate of return of 8%. After 10 months, your investment portfolio would be worth $1,200.  
Nikhil Rawat answered 1 month ago
Compounding is the process of earning more money by investing your principal into a growing investment. The more you invest, the more potential you have to earn even more money.