Hey fellow investors! I’m fairly new to the stock market and I would like to invest in ETF(VOO) monthly so that I can retire with a peace of mind in the future but I would like to understand more about compound interest before doing so.
As we all know, VOO has been steadily increasing over the past 10 years except last year which dipped a little. Since I’m planning to invest VOO every month at a fixed amount, wouldn’t I be getting lesser shares as time goes by? (E.g Investing fixed amount of $1200 every month. ETF price: $300). In this example, I would have 4 shares of ETF. And 5 years down the road the share of 1 ETF increased to $400. I would only have 3 shares.
Does this mean I would have to increase my fixed amount by then? How does compound interest comes into play?(all I know is that the gain in % is based on your previous account value and not initial investment) Or am I getting the whole concept all mixed up?
Thank you in advance!
Submitted April 26, 2021 at 12:11AM by hustlereng https://ift.tt/3xzpR74
