Investing

margin-lendingRegular saving plan

Janet, Peter and Lynne each decided to invest $10,000 with the same fund. Over a ten year period it returned an average of 8 per cent per annum.

While Janet made no additional contributions, Peter added $100 per month to his original investment and Lynne added $200 each month to hers.

The difference in the return for each of their investments is dramatic.

 

Initial
investment
Monthly
contribution
Average
annual return
Value after
10 years
Janet $10,000 $0 8% pa $21,589
Peter $10,000 $100 8% pa $39,602
Lynne $10,000 $200 8% pa $57,614


Source:
 Colonial First STATE dated August 2011

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