‘Compounding is the most powerful thing on universe’ that’s because it increases exponentially over a period of time. The major factor affecting compounding is time.The more time you have to stay invested, the longer your investment can compound, or grow in value.
Compounding is a financial phenomenon that makes time work in your favor. It’s what happens when your investment earnings are added to your principal, forming a larger base on which earnings may accumulate. It speeds up with you increasing investor base. As your investment base gets larger, it has the potential to grow faster.
It even beats managed fund.
Compounding doesn’t need timing it needs time to grow.
