PFF Panel 1
Seedly PFF 2019
Asked by Anonymous
Updated on 18 Apr 2019
Top Contributor (May)
To receive such high compounding interest, high yield bonds or P2P lending could be a risky bet.
Another method of course is compounding growth from equities. Though they sound similar, they are actually very different. Compound interest only works if you receive constant return every year without fail.
Equities can go up and they can go down. Any big negative year will wipe all your compounding growth of the previous years. But in the long term while also reinvesting your dividends, you can expect a diversified portfolio to achieve compounding growth.
So start investing in equities and a diversified portfolio.