Hi Friends, this may be a simple question to ask but couldnt understand the below concept in SIP

(a) Power of compounding

(b) Rupee average cost

Please some one provide me link or explain with example.

Lets say in case of Bank FD after each year we get interest and that interest is added to principle amount and that becomes the new principle amount on which the next interest is calculated this is what the power of compounding i understand but how does the power of compounding works in SIP

I will be happy if someone clears my doubt.

Thankyou