I am very new to stocks and need some clarification please. I'm am unsure as to whether this is the correct thread to be posting under, and I apologise if it is not. Here is my current position:
I have invested a considerable sum on the ASX200 through an index fund, but I am unsure how exactly I earn money from this? Also, I am considering opening a First Home Saver with Commonwealth Bank. My thoughts are depositing profits from my index fund into a First Homer Saver account as the federal government pay 17% of money deposited (up to $5,500) for each financial year. In addition, Commonwealth Bank pay 5.25% P.A. to this account. The concept behind this approach is great; earning 20% on profits (from index fund) up to $5,500 (assuming the ASX200 performs well).
Is this a good option or is reinvesting within the index fund more beneficial. I am not asking for advice but simply your individual opinion. Also, originally I have chosen to reinvest my profits into the fund, does this mean I will accumulate more shares over time? I am only 20 years old, and have 9 years of university left, during which, I will not be purchasing a home. Thank you for your input and opinions.