Compounding brain freeze

[Jamese20]

hi guys,

My child is keeping me up late at night most nights so my brain probably isn't working very well today,

am i missing something? by picking 4 different index funds to diversify aren't you hindering your compound effect on returns massively? if you pick one index fund that does the diversification you want and invest all your money into that the compounding effect is surely huge compared to picking 4 different ones?

I am sure this is the case as i ran a couple of compound calculations and the difference over a decade is huge

this makes a massive case for all in one funds?

[Ramparts]

am i missing something? by picking 4 different index funds to diversify aren't you hindering your compound effect on returns massively? if you pick one index fund that does the diversification you want and invest all your money into that the compounding effect is surely huge compared to picking 4 different ones?

I am sure this is the case as i ran a couple of compound calculations and the difference over a decade is huge

Care to show your work? I suspect maybe there's something missing in your calculation.

[SeattleCPA]

Use Portfolio Visualizer's backtest tool to double check your work?

https://www.portfoliovisualizer.com/backtest-asset-class-allocation

Different allocations will perform differently. (More risk, more reward.) But it should all make sense.

[boarder42]

haha i dont understand what your question even is.

but from your question i can tell you have no idea what you're talking about and need to read. 

so go read jl collins stock series then report back with your findings.

[Jamese20]

its ok guys thanks for the tools i will use those - i just did a general compound interest calc

i was being thick

the compound effect of 4 funds vs 1 is the same if the returns are same :)