If u start out investing for compound interest with limited capital, the compound effect can seem very slow.
If u have many years of investing too look forward to, u may decide to go for some growth and accept a lower yield.
Risk versus Reward.
If your growth shares print a profit u could use those profits to re-invest in the higher yielding Trusts and grow your Snowball quicker.
If they don’t print a profit, u will still have some dividends to re-invest.
If u are near to retirement, u may decide the safety of Investment
Trust dividends are safer for your hard earned.
The emotional benefits of dividend re-investment.
In fact, with this investment strategy you can actually welcome falling share prices.
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