Investing To reach your financial goals, understand the benefits of compound interest. Compound interest doesn't require any extra work on your part. You just sit back and watch your investment grow. The only thing it requires is time - the more time you give it, the more it benefits you. This is generally the safest category of investment, but it produces the lowest returns.
Examples are stocks and equity mutual funds.
This is generally the riskiest category of investment, particularly over the short term, but if offers the greatest potential for the highest long-term returns. Canadian Bankers Association. There's Something About Money . Canadian Bankers Association, 1999.