It may be very clear to see that the longer you invest, the bigger the potential effect of its performance on the original value of your investment will be.  Many investors will be familiar with the term compounding from owning their own cash savings accounts. This term refers to money multiplying its self by earning a return on the return. When time goes by, compounding can make a significant difference.

Your investments that you make can also benefit from compounding in a similar way if you reinvest any income you receive.

However it is important that you remember the value of stock market investments will fluctuate, causing prices to fall as well as rise and you may not get back the original amount you had invested.

If you have investments or wish to make investments for the long term and wish to seek independent financial advice on them, we at Hutt Professional have financial advisers with many years of experience in giving investment advice. If you are located in Leamington Spa or surrounding areas and wish to seek independent investment advice please do not hesitate to contact us.


Source:  03/09/2015