(Long version)
Hello,
a few years ago, when I started working, I used to invest about 400 euros monthly with a promoter on funds, because I had read up on various investments and it seemed like the most decent choice to avoid investing too much time.
Lately I've been getting interested in compound interest, but I don't know how to apply it to my investments, because if I withdraw the profits I have to pay tax on them and if I reinvest them, I end up with less percentage (entrance fees and current fees). wtf 😅
I currently own two funds, which probably due to annual fees I should withdraw, however as they are small I don't know whether to invest them in some new project or keep them there for life (about 20k), I'm still deciding.
Fund names: Franklin technology N eur acc (positive var since first purchase +23%), ff sustainable glob healthcare fund. (positive var+8%) (current expenses for both 1.81%)
if I take the profits and reinvest them in the same fund, I actually lose out, so what are the financial tool that allow the compund theory to be applied other than dividends, which for my budget would not give me a decent annual %?
TL:TR
What are the tools that allow compound interest to be applied?
original posted by robertlol95 to r/personalfinance on Thu, 29 Feb 2024 11:52:24 GMT.