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Do Mutual Fund Returns Compound?
Do Mutual Fund Returns Compound?
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Mutual Funds

You might have heard people talking about the wonders of compounding. When talking about the benefits of long term investments, investors are often told that over a long time, the compounding effect leads to higher accumulation. However, time and again we also come across articles claiming there is no compounding in mutual funds. They say anyone who talks about the wonders of compounding is lying. Why does this dichotomy exist and why only in the case of Mutual Funds?