For a person holding a mutual fund, compounding the returns on the fund leads to a higher total return in the future than without compounding.

Name: For a person holding a mutual fund, compounding the returns on the fund leads to a higher total return in the future than without compounding.
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Quizplus · Accepted Answer

Compounding allows the returns earned on an investment to be reinvested and earn returns of their own, leading to a higher total return over time. This principle applies to mutual funds as well.

For a Person Holding a Mutual Fund, Compounding the Returns