MAM

How the Power of Compounding Can Provide Better Returns for Your Child Plan

Published

2 months ago

December 9, 2025

Every parent wants to build a strong financial base for their little one. A child plan can help you save in an organised way, yet real growth happens when returns begin to build on top of previous returns. This is where compounding comes in.

Even with small contributions, you can create a solid corpus because every bit of earnings is reinvested. When you combine long-term discipline with the right tools, such as a power of compounding calculator, to plan your child’s future, you gain clearer insight into how your savings can grow. This makes it easier to plan for education, skills, and other major milestones without stress.

What Does ‘Power of Compounding’ Refer To?

The power of compounding refers to the process in which your investment earns returns, and these returns also begin earning additional returns over time. It works like a growth loop that gets stronger the longer you stay invested. In the early years, the growth may seem slow, but as time passes, the reinvested returns begin to multiply. This effect is especially important for long-term goals like your child’s education or future financial independence.

To make this easier to understand, you can use a power of compounding calculator. It shows how small monthly investments can grow when compounding is involved. When you use a power of compounding calculator to plan your child’s future, you can compare different investment horizons, contribution amounts, and rate-of-return scenarios. This helps you select the right child plan based on your long-term goals.

How Compounding Leads to Better Returns for Your Child Plan

A child plan becomes much more effective when you give it time to grow.

• Because these plans usually run for long durations, the compounding effect becomes stronger every year. When your returns start generating additional returns, the total value of your investment grows much faster than it would with simple interest.

• Even if the amount invested each month is modest, time gives it room to grow into a meaningful future fund. A children’s investment plan that runs for 10 to 20 years can transform small, steady contributions into a large education or career fund.

• Compounding also helps smooth out market movements (if the plan is market-linked). Investment returns can vary from year to year, but compounding ensures that the accumulated value keeps rising over the long run.

• Additionally, a child plan often comes with life cover, which means the future contributions may be taken care of even if something unfortunate happens to the parent. This ensures the compounding process continues, regardless of circumstances.

You can use a power of compounding calculator to plan your child’s future and see how you can plan more effectively.

Example of Compounding

Let’s consider a simple example to understand how compounding works in a child plan.

Imagine you invest ₹3,000 every month into a plan that generates an average return of around 10% per year. During the initial years, your main earnings come from the contributions you make.

But as the years pass, the compounding effect begins to strengthen. Your balance grows not just from your monthly contributions but also from the reinvested returns. By the end of 15 years, you would have invested ₹5.4 lakh in total. But thanks to compounding, your wealth could grow to ₹12.5 lakhs (approx).

Now imagine extending this to 18 or 20 years. The growth becomes even more dramatic because compounding accelerates in the final years. If you use a power of compounding calculator, you can test different scenarios, such as increasing your monthly savings, starting earlier, or adjusting the expected rate of return.

This example shows how a small, steady contribution to a children’s investment plan can turn into a large fund simply by giving compounding enough time. The key is to remain patient, consistent, and committed to long-term investing.

To sum it up, compounding is one of the strongest tools you can use to build a secure financial future for your child. When paired with a suitable child plan, even small contributions turn into meaningful amounts over time. By using a power of compounding calculator to plan your child’s future, you can make smart decisions, track your progress, and stay motivated.

Related Topics:Child Plan children's investment plan

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Delhivery chairman Deepak Kapoor, independent director Saugata Gupta quit board

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3 days ago

January 31, 2026

indiantelevision.com Team

Gurugram: Delhivery’s boardroom is being reset. Deepak Kapoor, chairman and independent director, has resigned with effect from April 1 as part of a planned board reconstitution, the logistics company said in an exchange filing. Saugata Gupta, managing director and chief executive of FMCG major Marico and an independent director on Delhivery’s board, has also stepped down.

Kapoor exits after an eight-year stint that included steering the company through its 2022 stock-market debut, a period that saw Delhivery transform from a venture-backed upstart into one of India’s most visible logistics platforms. Gupta, who joined the board in 2021, departs alongside him, marking a simultaneous clearing of two senior independent seats.

“Deepak and Saugata have been instrumental in our process of recognising the need for and enabling the reconstitution of the board of directors in line with our ambitious next phase of growth,” said Sahil Barua, managing director and chief executive, Delhivery. The statement frames the exits less as departures and more as deliberate succession, a boardroom shuffle timed to the company’s evolving scale and strategy.

The resignations arrive amid broader governance recalibration. In 2025, Delhivery appointed Emcure Pharmaceuticals whole-time director Namita Thapar, PB Fintech founder and chairman Yashish Dahiya, and IIM Bangalore faculty member Padmini Srinivasan as independent directors, signalling a tilt towards consumer, fintech and academic expertise at the board level.

Kapoor’s tenure spanned Delhivery’s most defining years, rapid network expansion, public listing and the push towards profitability in a bruising logistics market. Gupta’s presence brought FMCG and brand-scale perspective during a period when ecommerce volumes and last-mile delivery economics were being rewritten.

The twin exits, effective from the new financial year, underscore a familiar corporate rhythm: founders consolidate, veterans rotate out, and fresh voices are ushered in to script the next chapter. In India’s hyper-competitive logistics race, even the boardroom does not stand still.

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Meta appoints Anuvrat Rao as APAC head of commerce partnerships

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3 days ago

January 31, 2026

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Before that, Rao founded generative AI venture 1Bstories, which was acquired by creative AI platform Laetro in mid-2024, where he briefly served as managing director for APAC. Alongside operating roles, he has been an active investor and advisor since 2020, backing startups such as BotMD, Muxy, Creator plus, Intellect, Sealed and CricFlex through a creator-economy-led thesis.

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Brnd.me enters Europe as haircare brands power global expansion

Published

3 days ago

January 31, 2026

indiantelevision.com Team

Bengaluru: Brnd.me, the global consumer brands company formerly known as Mensa Brands, has entered the European market following strong momentum across the Middle East, the United States and Canada.

The company has launched across the UK, Germany, France and Spain, with plans to expand into Italy, the Netherlands and Poland over the next year. The push is being led by its haircare and aromatherapy brands, Botanic Hearth and Majestic Pure, marking Brnd.me’s first structured expansion into Europe.

The European beauty market represents a total addressable opportunity of over $4 billion across haircare and aromatherapy, supported by high digital adoption and demand for accessible, performance-led products.

Brnd.me’s hair care and aromatherapy business currently operates at an annual run rate of around $6 million, with Botanic Hearth and Majestic Pure delivering roughly 10 per cent month-on-month growth, driven by expansion and rising repeat demand.

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Early traction has been strong. Within weeks of launch, Botanic Hearth’s rosemary hair oil ranked among the top five hair oils in Germany, signalling strong consumer pull in a competitive market.

Brnd.me founder and chief executive officer Ananth Narayanan, said Europe represents the next phase of the company’s international strategy. He added that the European business is expected to scale to a $10 million annual run rate by the end of 2026, with long-term ambitions to reach $60 million over the next six years.

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The move also aligns with growing EU–India trade engagement, supporting long-term sourcing and cross-border supply chains.