"**Compounding benefits investors using SIPs by reinvesting returns, leading to exponential growth.** This concept, crucial in **financial planning** and **investment strategies**, is magnified with **Systematic Investment Plans (SIPs)**. When returns earned from SIP investments are reinvested, they generate further returns over time. This continuous cycle of **reinvestment**, often referred to as **the power of compounding**, results in **exponential growth** of the invested capital. Essentially, you're earning returns not just on your original investment but also on the accumulated returns, creating a snowball effect over the long term."