Money Guru: How Does The Power Of Compounding Work In Mutual Funds? Should You Buy A Mutual Fund Based On Its Rating?

The amount invested by compounding increases year after year. The benefit of power of compounding is available in mutual funds. Do not stop investing immediately in a downtrend in the market. Keep investing till the target is met. Don't choose a fund just by looking at the star rating and returns. Choose the fund that best suits your goal. Wrong fund selection will make the portfolio aggressive or conservative: Hemant Rustagi, CEO, WiseInvest Pvt Ltd and Vikas Puri, Head (West Zone) of Complete Circle Consultant.