facebookI always hear people talkings about compounding interest in videos. Is investing in robo-advisors counted as compounding? doing Dollar cost averaging is not compounding? - Seedly

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Anonymous

13 Sep 2020

Stocks

I always hear people talkings about compounding interest in videos. Is investing in robo-advisors counted as compounding? doing Dollar cost averaging is not compounding?

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Compound interest refers to getting interest on the interest from your intial investment.

Dollar cost averaging is simply the method of investment as compared to lump sum (one-shot) and does not affect whether your returns are compounded.

In the case of robos, if returns, in the form of dividends, are re-invested then there will be compound returns. ​​​

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