The Power of Compounding
It's kind of like telling your money to get a job!
Potential value after 30 years.*
|This is the current market value of your portfolio.|
|Try $5, $10, $20 or more.|
|Your daily investment||$|
|This is a hypothetical rate of return. Please make sure you read the important information below to learn more.|
|Usually the longer you compound, the higher your potential return.|
Play with the calculator
(make your own estimates)
*Hypothetical calculator based on inputs selected, for educational purposes only. Higher rates of return are typically associated with greater volatility and higher risk of principal loss. Please see the Important Information link below.
#1 The compounding doesn’t start until you start.
Most people don’t fully understand how powerful the effects of compounding can be. If they did, many would choose to start investing right away.
But understanding the true power of compounding is not intuitive. The math must be seen to be believed.
When investment returns are positive, the benefit of having more and more money available to invest compounds over time. That’s because the returns earned by your original investment have an opportunity to earn returns of their own. The result is that small amounts invested today can turn into surprisingly large amounts the longer they remain invested.
Once you understand how the numbers work, it’s pretty clear why Warren Buffett believes, “My life has been a product of compound interest.”
But seeing is believing.
Make your own estimates in the calculator and see this surprising power for yourself.
(Hint: Whatever estimates you choose, the answer will always be the same–the sooner you get started, the better!)
What am I investing in?
No monthly fee - how do we do it?
Mutual fund investing involves risks, including possible loss of principal. It is anticipated that the Fund will frequently adjust the size of positions and thus may experience high portfolio turnover which may increase brokerage costs. Please see the prospectus for additional information.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. The prospectus and summary prospectus should be read carefully before investing. Gotham Funds, including the Fund, are distributed by Foreside Funds Distributors LLC ("FFD"). Gotham Asset Management, LLC is the investment adviser to the Gotham Funds and is not affiliated with FFD. FFD does not open, maintain or monitor customer accounts, nor does it accept any investments or handle purchase or redemption requests. Shareholder accounts invested directly with the Gotham Funds are held at the transfer agent, BNY Mellon Investment Servicing.