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What the Power of Compounding Can Mean for Your Investments

By the Inspired Investor team

Published January 8, 2024 • 2 Min Read

One expert tells us how our investments can make money…almost effortlessly.

If the term “compounding” seems a little confounding, this video is for you. Rachel Megitt , Vice President, Term Investments & Savings, Personal Banking and Investments at RBC breaks down the power of compounding when it comes to investing and why it can be a powerful force to grow your money over time. Plus, she shares an example of the snowball effect over a five-year horizon.


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Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.

RBC Phillips, Hager & North Investment Counsel Inc. and Royal Bank of Canada are all separate corporate entities that are affiliated. RBC Phillips, Hager & North Investment Counsel Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and RBC Wealth Management are registered trademarks of Royal Bank of Canada.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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