Investing in funds growth on growth?

Discussion in 'Investing' started by Matt0029, Apr 4, 2021.

  1. Matt0029

    Matt0029 New Member

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    If investing in funds in the stock market. If you invest 10k after a few years your investment is say 30k. If the fund then grows 20% the following year. Would the value of your investment go up by 20% of your initial cash deposit of 10k. Or my 20% of the market value of your deposit 30k? Thanks
     
  2. TomB16

    TomB16 Well-Known Member

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    Welcome to Stockaholics, Matt.

    If the equity gains 20% in the final year, that would be on top of the gains of the first few years so you would have 36K. In this way, the final year compounds the gains of the first few years.
     
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  3. Teddy Felder

    Teddy Felder New Member

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    If your returns on investment of 10k are 20%. This means that the amount you invested has increased by 20% in the following year. In comparison to returns of that particular investment is more than that.
     

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