Exactly. Compounding refers to interest on (previous) interest, returns on (previous) returns.



This post has been edited by TOS: May 18 2021, 11:34 PM

maybe you can try substitute "Cory’s Truck Company" from that example; with something more locally known unit trust or mutual fund like TA Global Technology fund or Principal Asia Pac Dynamic Income fund.
then also replace the word "share" or "share price" from that example too with NAV or NAV price (for unit trust/mutual fund)....
just forget about unit distribution (if any) for that example.
then hopefully you can see better?

effect of compounding or effect of compounding interest?

This post has been edited by MUM: May 19 2021, 08:26 AM

Hi all, I'm starting a personal finance series @ youtube, and am thinking if it's okay to link my stuff here. Financial literacy among youth is important, so I'm doing my small part in increasing awareness.

Start managing your money early, you will thank yourself in the long run =)

Is anyone keeping money abroad since our RM value is dropping day by day?

I know investing in foreign stocks are one, what other options do we have?

I just shifted my savings to singapore bank account

U can search the theead “opening a singapore savings account”

The steps are there
I feel more secure wit my money there

But i cant collect interest

In theory you do.

The appreciation of SGD against MYR (currency), the fact that your feel safer parking your money there (credit risk), is the "interest" that the market prices in.

The lower interest rates of SGD deposits against that of MYR is the price one has to pay to compensate for the lower credit risk and other factor in SG (relative to MY).

Once again, the old adage: There is no free lunch in this world. There might be one occasionally, but arbitrage will ensure things remain balanced. Risk-return tradeoff is always true.

I have an account but when I saw the interest rates, I was looking for other options as well.

use your money in SG bank for investment...instead of sitting there?

For me, atm, i dont know what to invest in

IBKR but i dont know how to choose stocks

if you don't know,...let other do it for you....?
like UTs, ETFs Robos, and many other investment platforms??

there should be some that has portfolios to suits your risk appetite?

Go dump your money into s&p500. No need to think so much. Clearly you didn't do your homework yet despite me giving all the links for you to read.

You should not open Ibkr if you are not ready to invest. Remember even TSG have inactivity fees if you have less than I think USD1-2k. Of course if you don't mind losing money then just give free money to IBKR.

This post has been edited by Ramjade: May 26 2021, 06:22 PM

I read through it

I really did

I am thinking of bluechips through ireland

This post has been edited by taiping...: May 26 2021, 06:23 PM

If you had read, you would have a rough idea on what to do.

I invest in SA SG

I guess am risk adverse atm

It’ll take some time for me to go in

Better go for forex, cash cow.

Thanks for the info

I hav not put my money in IBKR yet

Tho, wit this little push of yours, i will buy into something now 😆

I would also suggest you to read up some academic finance and economics book, uni textbooks preferably. Have a good understanding of finance and economics will be of great help to you in understanding how the financial markets function.

At least you can think independently and not follow the herd. Investing is one thing to practice, but without understanding the underlying theory your portfolio won't go anywhere. For example, why S&P 500 is recommended instead of stock/portfolio picking etc. There are reasons behind these.

This account was mainly created for IBKR to buy US shares but i'm looking at something with lower risk, besides FD since the rates are low.

since it was for buying shares,...then the interest rate concern does not matter much....
a little bit of gains can covers years of "interest rate"