The power and effect of compound interest on your savings is remarkable. It ws described by Albert Einstein as the 8th wonder of the world. The fact that saving for 10 years can result in a bigger fund than saving for 40 as illustrated in the Telegraph article below is a testament to this simple mathematical fact.
With equity investments the re-investment of dividends has the same compounding effect. The Charles Stanley article in the link below discusses the effect of dividend re-investment and how important it is.
Press Articles Compound Interest Power & Dividend Re-investment
two links here to articles on the effect of compound interest and dividend re-investment. Please click on the Article Links tab to visit read more.