Compounding

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

Compounding is the process where investment earnings generate additional earnings over time. It allows small investments to grow significantly due to the reinvestment of interest or profits.

Key Features

  • Helps in wealth growth
  • Earnings on earnings
  • Long-term investment advantage
  • Key concept in finance and savings

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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