Compounding is a potent instrument that can support the long-term achievement of your investing goals. The idea is straightforward: after making an investment, you receive a return. This return is then reinvested, and so on. Compounding's effects can become rather large over time. In order to achieve exponential growth over time, compounding enables you to receive returns on both your initial investment and the returns generated from it. You may take advantage of the power of compounding by starting early and continually reinvesting your gains, which will help you reach your investment objectives more quickly. The key to successful compounding is to choose high-quality investments that offer steady returns, and to reinvest your earnings back into your portfolio.
The benefits of compounding your investment
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