I have a query that's been bugging me. I have been investing in the UK stock market + funds for around a year now.
- Retirement Fund
- FTSE index Fund
- Managed Accumulation Fund
My query is, will these investments over a long period of time compound? (monthly investments for around 25 years)
I mean i'm a bit unsure of how the dividend payments work and I am a bit confused with a lot of the terminology used.
As with anything the prices go up and down daily but if I just keep putting in monthly and don't touch the money will the grow exponentially?
Can someone please give a layman's explanation of dividends, accumulation funds, index funds.
I mean if I have been investing for around 12 months, why do I not see any dividend returns?