Do you know how you can maximise compound returns?
“The compound return is the rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses has on an original amount of capital over a period of time.” – Investopeia.com
There are various types of compound returns with compound interest being the one which is spoken about the most. The power of compounding is something that most people can be utilising, likely in ways that are unaware of.
In this video Bigmore Associates Director of Investment and Financial Planning, Julian Strauss, provides an overview of compounding, how and why compound interest can be so effective, and gives an example of how you can utilise compound returns to make a difference to your finances.
As with many things in life, when it comes to investments patience is a virtue. Having a balanced portfolio and taking the time to let it change and grow naturally is an integral part of the process. For help arranging your funds in the correct way for you, please do get in touch with our team. We would be happy to help.
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