The Astonishing Power of Compounding Returns

If you’ve ever wondered how the wealthiest investors grow their fortunes, it often comes down to one deceptively simple concept: compounding.

Compounding is the snowball effect that happens when your earnings generate their own earnings. Over time, this creates exponential growth — not linear. And when paired with high-performance strategies and consistency, the results can be truly astonishing.

To demonstrate this, let’s compare two compounding return scenarios using a starting balance of just $10,000 over 10 years:

• At 40% annual growth, that $10,000 grows to $289,000*

• At 70% annual growth, it rockets to nearly $2 million*

These are the kinds of figures we focus on delivering through our active, algorithm-driven software. The growth doesn’t happen in a straight line — there may be periods of flat returns or minor drawdowns — but the long-term objective is powerful and consistent wealth accumulation.

Now compare that with more traditional options:

• The average high-interest bank account returns around 4% p/a, turning $10,000 into just $14,802 after 10 years

• The average superannuation fund has returned approximately 6–8% p/a, growing $10,000 to around $17,908–$21,589

When you look at the maths, the difference is staggering.

The key? Staying invested. The real magic of compounding happens over time — not overnight. That’s why we encourage clients to see this as an investment journey, not a get-rich-quick scheme. The goal is to have a lot more money at the end of the decade than at the beginning — and compounding makes that possible.