Read about how you can make compounding work in your favour and why diversification and borrowing are important

Learn & Connect Investor Resources Important financial concepts

Make compounding work for you!

Save early and often

  • Read Noel Whittaker’s article on harnessing the power of compounding and the psychology behind why we don’t start saving early,

Compound interest explained

  • Watch an infographic video from Investopedia showing how compound interest works with a very simple example.

Compounding in reverse – understanding the impact of costs

Compounding in reverse – understanding the impact of costs

Diversifications: don’t put all your eggs in one basket!

  • Moneysmart explains that diversification helps you ride out the ups and downs of financial markets by spreading money across different asset classes.
  • Explore Investopedia’s tutorial on diversification and watch a video from world renowned investor Ray Dalio on his views on the importance of diversification.

Borrowing to invest. Is borrowing to invest risky?

  • Moneysmart explains the pros and cons of borrowing to invest to help you decide if it is right for you.

Borrowing to buy shares

Gearing vs not gearing

  • Is gearing (borrowing money to invest) worth the risk? Canstar’s reviews the ASX report on gearing vs not gearing and says there a lot of things to consider before making the leap.