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Deng Jian Zhong

18 Dec 2021

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Why is there difference between "monthly compound" & "yearly compound"

When we introduce a financial product, I should advertise the returns based on "monthly compound" or "yearly compound" ??

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1M45

18 Dec 2021

Yes there will be a different. if you compounding it monthly it will be more.

when u advertise most of the time, should use yearly. Because 16% is the average over long period of time.

Monthly compound can use to elaborate only when your financial product pay an fixed monthly dividend and then reinvested to buy more units. The more frequency the dividend payout the snowball effect will be greater.

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