Elephlow
FINANCIAL GLOSSARY

Compound returns

Returns that generate further returns when they remain invested.

Definition

Returns that generate further returns when they remain invested.

Why this concept matters

Over time, this mechanism can accelerate savings growth.

What to watch

Its effect depends on actual returns, fees, tax and time.

Simple example

At 5% a year, €10,000 grows to about €16,300 in ten years before fees and tax.

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