Compound Interest
The same rate compounds to different amounts depending on how often it is applied.
Maturity amount
₹6.21L
Effective rate 12.00% a year.
Principal
₹2.00L
Interest
₹4.21L
Multiple
3.11x
Assumptions
Principal₹
Periodyrs
Interest rate%
Compounded
Split
₹6.21L
maturity
Principal₹2.00LInterest₹4.21L
At 12% compounded yearly, the effective annual rate is 12.00%. Illustrations only — they assume a steady rate of return, which no market delivers. Actual returns will differ. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.