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Last updated Mar. 10, 2022 by Peter Jakes
Investing your money is a great move to achieve financial freedom. But you must invest right if you want your money to work so hard for you. The question is: “Will it be possible to invest your money into 12% compound interest accounts?“
Finding opportunities that could yield as much as 12 % return is obviously not easy? In this article, you will learn about 12 successful investment programs that might help you consider possible options for investment.
Do 12% Compound Interest Accounts Exist?
New investors often doubt the existence of 12% compound interest accounts. But over the past decade, many businesses have given their investors an average return of at least 12%. Most of these companies offer opportunities that allow investor funds to be well utilized resulting in considerably high returns while also taking advantage of the power of compound interest.
12 Investment Success Stories that Guarantees 12% Compound Interest Accounts
If you look forward to becoming a successful investor, you may have to open the right type of account to enjoy a possible 12% compound interest rates.
There are several types of accounts specifically created for investors, but not all types of account have the same interest yielding potentials.
So which accounts are the best to earn up to 12% compound interest rates? The following accounts types target at least 12% compound interest or more, especially for long term investors.
Vanguard Growth Index Fund (VIGAX)
The Vanguard Growth Index Fund (VIGAX) is a fund that focuses on investing in top stocks of the U.S. largest companies in the market sectors expected to grow extremely fast even more than the broad market.
Investors that opt for this low-cost index fund often adopt the buy-and-hold tactics. Since VIGAX holds the stocks in large Us Companies, Vanguard sees this fund as a great option for investors.
What is the compound interest rate on VIGAX?
For the past decade, the average annual returns VIGAX were estimated to be 15.31%. This implies that VIGAX guarantees that investors can earn more than a 12% compound interest rate from their investments.
In fact, it is regarded as one of the best-performing funds out there in the market. Comparing VIGAX to other funds, you will realize that it made the top list of 12% compound interest accounts. VIGAX also outperforms trusted board market funds such as S&P 500. Hence, it is a great investment choice to consider.
Vanguard Small-Cap Index Fund (VSMAX)
Vanguard Small-Cap Index Fund (VSMAX) monitors an index of small companies, and it holds over 1350 stocks. Unlike some stock options, VSMAX provides a terrific opportunity for investors to make more returns from their investment choices.
It offers great exposure to the small capitalization in the U.S. equity market. Hence, investors can learn about the equity market before considering investing in such an opportunity.
Although investors are required to begin with a $3,000 minimum investment, there are still numerous benefits to gain from VSMAX. What is the compound interest rate on VSMAX? The VSMAX has an average return of 13.77%, greater than the average 12% compound interest accounts.
Hence, VSMAX stands out to become one of the best 12% compound interest accounts. As an investor, you will surely gain from investing in this opportunity.
Vanguard 500 Index Fund (VFIAX)
The Vanguard 500 Index Fund (VFIAX) monitors the overall performance of the 500 largest publicly traded companies within the United States.
Investors that invest in this stock option are opportune to own stocks in some of the largest companies globally, even without buying the shares directly.
When you invest in VFIAX, you are also monitoring the performance of the S&P 500. As an investor searching for the best ways to take advantage of your investment, buying S&P 500 stock is a great way option.
What is the Compound Interest rate on VFIAX?
VFIAX compound interest can be determined based on the latest estimation from the last decade. From the 2010s up to the 2020s the annual returns of VFIAX were around 14.12%. Since the compound interest rate of VFIAX exceeded 12% in the last decade, investors often consider this VFIAX as an excellent choice of investment to work with.
Vanguard Large-Cap Index Fund (VLCAX)
Vanguard Large-Cap Index Fund (VLCAX) offers broad low-cost exposure to the large market capitalization through investing in the big US-based companies which represent the top 85% of market capitalization.
Investors considering VLCAX should only think of investing in large U.S. companies. VLCAX investment is favorable for both short-term and long-term investors.
However, long-term investors searching for exposure to the biggest U.S. stocks may consider this option before checking out any other fund. This implies the top U.S based companies held over 600 stocks in VLCAX.
Apple, Microsoft, Amazon, and many others are some of the best U.S. companies under the VLCAX. As an investor, you should keep in mind that the returns may be impacted by the pull of broad stock market.
What is the compound interest rate on VLCAX?
Over a decade, the average annual return of VLCAX is estimated at 14.12%. This implies that the compound interest rate of VLCAX is almost like that of VFIAX. With an average annual return of 14.12%, VLCAX is considered as one of the best 12% compound interest accounts to consider.
Vanguard Health Care Fund Investor Shares (VGHCX)
Vanguard Health Care Fund Investor Shares (VGHCX) is an industry-specific index fund stocks in both US-based and other international companies around the healthcare sector.
When you want to invest in this stock option, keep in mind that you are investing in top pharmaceutical companies, health research entities, and other lists of companies.
What is the compound interest rate of VGHCX?
The average annual return rate of VGHCX is estimated at 15.18%. With this rate, VGHCX is rated as one of the best-performing funds added to this list. With an annual return rate of 15.18%, VGHCX is regarded as one of the best 12% compound interest accounts.
Vanguard Balanced Index Fund Admiral Shares (VBIAX)
VBIAX consists of small and specially selected mutual funds or ETFs that have been invested in stocks. Unlike other vanguard funds, VBINX exists as a moderate-risk stock option. Investors that desire this index fund can get started with the minimum initial investment of $3,000, at the expense of 0.07%.
VBIAX is more favorable to investors with a long-term investment plan, who desire to grow their investment within a short time.
What is the compound interest rate of VBIAX?
The annual return rate for 10 years is estimated to be 14.85%. This estimation qualifies VBIAX as one of the best 12% compound interest accounts to consider.
Vanguard Global Minimum Volatility Fund Investor Shares (VMVFX)
VMVFX offers investors funds with a reduced risk profile. This implies that investors don’t have to be afraid of losing their investment in any circumstance.
The Vanguard Global Minimum Volatility Fund Investor Shares offers investors a smooth pathway to carry out successful investment with time. Even though no investment is free from risk, VMVFX provides investors with numerous opportunities.
When you consider the VMVFX option, you should keep in mind that you are investing in about 300 stocks. These 300 stocks consist of 15% of technology, 14% of consumer staples, and 16% of healthcare.
When you invest in these stocks, you are also investing in some big tech companies within the United States.
What is the compound interest rate of VMVFX?
The average annual rate 10 years rate for Vanguard Global Minimum Volatility Fund Investor Shares is estimated at 13.46%. This implies that VMVFX surpasses the benchmark of 12% compound interest accounts.
Vanguard Dividend Growth Fund (VDIGX)
The Vanguard Dividend Growth Fund (VDIGX) focuses on increasing and stabilizing income associated with any investment plan arrived on by the investors.
Most companies associated with Vanguard Dividend Growth Fund include the UnitedHealth Group (UNH), Johnson & Johnson (JNJ), Fast Food Icon McDonald’s (MCD), and many others.
When you invest in this fund, you will surely have a lot to benefit from making such a positive decision. Almost every investor hoping to profit greatly from their investment plan should consider this option.
However, VDIGX will likely favor investors who are considering income growth and stability while creating their investment plans.
What is the compound interest rate of VDIGX?
The annual interest rate for 10 years is estimated to be 13.52%. This value surpasses the 12% compound interest accounts. Hence, VDIGX can be considered another great fund to consider.
Vanguard US Growth Fund Investor Shares (VWUSX)
The Vanguard US Growth Fund Investor Shares (VWUSX) concentrates more on popular blue-chip companies. VWUSX mostly focuses on the steady performance of companies to give investors more power to take advantage of the market in reaching their potential.
This fund consists of more than 250 stocks with its largest holdings in A list companies such as Amazon, Microsoft, Tesla, Visa, Alphabet, and more. As an investor, you will never regret your decision of investing in this fund.
What is the compound interest rate on VWUSX?
The average annual returns of Vanguard US Growth Fund Investor Shares are estimated at 15.12% performance.
Vanguard Total Stock Market Index Fund(VTSAX)
Vanguard Total Stock Market Index Fund (VTSAX) is one of the best stock investment options for most investors across the globe. Under this option, investors often have access to invest in a total stock market index fund.
VTSAX helps investors to monitor the progress of all publicly traded stocks across the United States. To be specific, VTSAX monitors the performance of more than 3,500 individual shares.
But before you consider this option, you must be willing to start with an initial investment of $3,000. As an investor, you can stand the chance of buying stocks of thousands of companies using the VTSAX stock option.
Vanguard S&P Small-Cap 600 Index fund (VIOO)
VIOO involves Small-Cap 600 index which represents 600 smaller U.S.-based companies. This index fund focuses on monitoring the index return. This index return serves as a gauge of the entire U.S. Small-Cap stock returns.
VIOO also offers high potential to enable investors to experience massive growth from their investment decisions. If you are a long-term investor searching for how to reach your investment goals, VIOO should be one of your best Index funds to consider.
What is the compound interest rate on VIOO?
The annual return rate for VIOO for 10 years is estimated at 12.65%. This implies that VIOO is above the 12% average compound interest account. Hence, it is a great option to consider.
Vanguard FTSE Social Index Admiral (VFTAX)
Vanguard FTSE Social Index Admiral (VFTAX) has assets under management of $13.8 billion and an expense ratio of 0.14%. VFTAX is attached to the FTSE4Good US Select Index, which exists as a market-cap-weighted index.
This fund comprises below 500 large- and mid-capitalization stocks which are regularly screened for environmental, social, and corporate governance criteria. This is also known as the acronym of ESG by investors.
What is the compound interest rate on VFTAX?
The average annual returns for ten years of VFTAX is estimated to be around 13.90.
In conclusion, irrespective of the investment direction or picks you opt for, understand that all investments come with a considerable level of risk.