Most of the financial advisors talk about the power of compounding. I can understand that in PPF/ EPF accounts the compounding happens. But can some one explain me how the compounding happens in case of SIP in mutual funds ??? Are they talking about the debt mutual funds where some constant interest is there ??? because in normal mutual funds the value only increases,,, if the NAV increases you get the benefit or else you nothing … and over the period the value increases,, i agree with that. but how its compounding ?????????