“Compound interest is the eighth wonder of the world. He, who understands it, earns it; he who doesn't, pays it.” Albert Einstein.
The effect of compound interest makes your money an extremely powerful means of generating income. Compound interest is the process of generating income from the reinvested income of an asset. To work, it requires two things: reinvesting profits and time. The more time you give to your investment, the more the profit potential of the initial investment will increase.
This is why Einstein said that the greatest force in the universe is the compound interest rate: with a sufficiently long period of time and set aside regularly, even the smallest amounts accumulate to bring about major changes in a person's life.
To have the effect of compound interest:
Start now. Invest regularly. Be patient.
The effect is observed when revenues generate even more revenue. You receive income not only from the initial investment, but also from other interest, dividends and capital gains, which leads to an increase in cash over the years.
The power of compound interest
The real key behind all this is the power of compound interest. Simply put, this means that you will get a profit on your initial investment. And so over time you will get a profit on the profit.
With a potential annual return of 10% invested a total of 1,200 BGN in the first year they will bring 56 BGN more. In the second year you will receive another 188 BGN, and the third year will bring about 330 BGN. The reason lies in the fact that the income from the previous year is also increasing. It may seem insignificant, but over time the effect can be amazing.
If you start setting aside 100 BGN every month and you earn sustainably (note: it will not be sustainable in the short term) every year 10% on your savings for the first twenty years the effect of compound interest will not be as impressive. But in the years to come, growth from initial investment is what becomes a real engine of wealth. Within 30 years, you will have set aside BGN 36,000, but the effect of the compound interest rate would add another BGN 190,000.
The good news for people who want to control their savings and want to take advantage of the complex interest rate, but do not have the time or tendency to focus on the investments on the capital market, is that Compass Invest JSC offers an easy and convenient solution - Savings Plan through the Compass Global Trends Mutual Fund.
On the following link you can check what your profit would be with a different installment, period and potential annual return, as well as learn how you can save by investing in MF Compass Global Trends: https://compass-invest.eu/compass-global-trends-savings-plan ;
Sofia, 19 Georg Washington Str., 2nd floor
tel .: 02/42 19 518, 02/42 19 517
email: office@compass-invest.eu
COMPASS INVEST JSC- Your personal Investment Advisor.
Compass Invest JSC is licensed management company by the Financial Management Commission since 2006.
Important information: You should keep in mind that the value of the shares and the income from them may decrease, profits are not guaranteed and there is a risk that you will not return the full amount of the invested funds. Past performance is not a reliable indicator of future performance, unit prices and their returns may decrease as well as increase, and investors may not receive the amount they originally invested. No profits are guaranteed. Investments are not guaranteed by a guarantee fund set up by the state or another form of guarantee. The prospectus and the document with key information about the investor can be obtained on paper and/or electronic media in Bulgarian in the office of the management company on the address: Sofia, 19 Georg Washington Str., 2nd floor every working day from 9 am to 5 pm and on the website of Compass Invest JSC.