The role of compound interest in long-term investments

Compound interest is an essential tool for long-term capital growth. When you reinvest the income you earn, it starts to generate additional returns. Over time, this effect increases, and even small amounts of money can increase significantly due to compound interest.

This mechanism is especially important for long-term investors. The longer your capital works for you, the more you can benefit from reinvesting income. Investing in assets such as stocks or funds can be a great foundation for compound interest capital growth.

Regular investments, even small ones, can significantly accelerate this process. Thanks to compound interest, each new investment starts to generate additional returns. This makes compound interest one of the most powerful tools for those who plan to invest for the long term and want to see significant capital growth.