The Power of Compounding

Compounding is one of the most powerful tools for building wealth in the stock market. By reinvesting dividends and capital gains, investors can earn returns on their returns, significantly accelerating their portfolio’s growth over time. This blog explains how compounding works, why starting early makes a big difference, and how investors can leverage it with dividend reinvestment plans (DRIPs) or automatic reinvestment in mutual funds and ETFs. Readers will see real-life examples demonstrating how small, consistent contributions can grow exponentially, making compounding an essential strategy for achieving long-term financial goals