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Do all mutual funds have compounding interest ?

Hi,

I have started SIP in few mutual funds like HDFC Balanced Fund Growth. I am unable to understand if funds like these have compounding built in or is it just the market value always. If its only market value then what is the point of doing a SIP over 5-7 years.

How can I choose a SIP that offers compounding.

Regards,

Vaibhav

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