I’ve started investing through Vanguard but I don’t understand how it makes money.
I understand that over time stocks go up but I don’t understand how I actually make any interest on my accounts in order for compound interest to come into play.
I am in the UK and I’m mainly investing into Vanguard Lifestrategy 80 accumulation so I’m led to believe that doesn’t pay dividends and therefore I don’t understand where the whole concept of compound interest comes in? Is there not a point in the year where any of the interest is realised?
I’m good with saving my money but math is not my strong point - I’m really trying to make my money work for me and I think I’m doing the the right thing planning on investing regularly for a long period of time but not understanding it is making me feel disheartened.