Compound interest is like magic - and it's an investor's best friend

The attached note looks at the recent pull back in investment markets and renewed uncertainty regarding the outlook. The key points are as follows:

  • Compound interest is an investor's best friend.

  • The higher the return, the greater the investment contribution and the longer the period the more it works.

  • To make the most of it, ensure an adequate exposure to growth assets, contribute early and often to your investment portfolio and find a way to avoid being thrown off by the investment cycle.

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