Sunday, April 14, 2013

Power of compounding

If you invested in Unit Trust, then you're already taking advantage of compounding. The income from these investments is reinvested so you earn returns on your returns. The earlier you start investing, the greater the benefits of compounding.
Compound interest works well in superannuation because it's a long term investment. You can't normally access your super until later in life, so your super benefits from many years of compound interest.


The pink sections of the graph show the compound effects and the blue sections show the principal investment.

Wish to take part of Compounding Interest by invest in Unit Trust?
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