What rate of return on a investment would you consider a good return?

Answer 1

I do not particularly think that CD's make for good investments even though they may be risk free. There are other options which can give you more than double the returns, principal and interest guaranteed.

I like to mix a fixed return on investment product with a slightly more aggressive investment option, there by my over all portfolio is quite better than what Mutual funds are giving.

Take a little bit of risk and you will enjoy looking at your portfolio grow. Its sad that most people tend to play so safe and they can do so much better taking small risks.

Regards

Answer 2

A good return completely depends on you and your investment goals. Are you a long term or short term investor? Are you saving for college, a car or retirement? A good return is simply determining how much you have to invest right now and ongoing to reach that goal and where to put the money to get there.

For some folks, a good return is a savings account at any bank that gets 1-2%. Others, its a money market or CD that gets 2-4%. Others its a retirement account that gets 8-10%. For mad money investors in the stock market maybe a good return is 25%.

Its all about the reason for investing and your tolerance for risk. Have a low risk tolerance....go with savings accounts or CD's. A good return for them. Have a high risk tolerance....invest in stocks. A potential good return for them, but big downside a possibility. Have a medium risk tolerance...invest in good mutual funds. Buffers upside and downside swings due to diversification effects.

Bottom line....what's a good return for you may be a sad return for others. Good news....you get to pick!

Answer 3

Keeping your principal safe and secure, about 5% is what you can get.

If you are willing to lock your principal up for a few years and hold bonds until maturity you could get 7-8% with a good corporate bond, assuming the corporation does not go bankrupt.

High yield stocks are paying 10 to 15%, examples are mortgage REITs, shipping stocks, some preferred issues. The underlying share prices will fluctuate with the market. Total return over a year might be minus 10% to positive 25%.

Speculative stocks, trading options & futures: Returns range from 100+% in a year to losing all the money.

So it all depends on what game you want to play. If someone is promising a high return without risk, they are misleading you.

Answer 4

The rate of return I would like is heavily dependent on the riskiness of the investment. For general stocks, 12% per year is a good but not great return - the kind that will generally beat the market, but isn't quite Buffettesque.
Right now the risk-free rate is over 5% now, which is relatively high, so I wouldn't be against simply putting money in a money market or other short-term instrument if you are risk-averse. Basically, it all depends on personal circumstances like time frame and risk tolerance.
Hope this helps.
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Answer 5

The long-term return on the S&P 500 is only about 8%. I'd say anything at that level or better is a good return.

Answer 6

If you are getting 10 % interest p.a without any risk then I would say it is good investment

Answer 7

there is two aspects to "complete return" in terms of investments -- earnings generated from activity and dividends and capital appreciation from the earnings or loss in central from investments. in case you receiving only the earnings out of your believe fund, of course it is going to look greater significant to you top now. regardless of the undeniable fact that, enhance in the central of your investments, of direction, facilitates out too (as i'm going to point in a sec) enable's anticipate the trustee is making an investment your money 50% in fixed earnings investments and 50% in shares ( a sturdy average asset allocation). With $4 hundred,000, that should point approximately $two hundred,000 in "earnings producing" investments (often) and $two hundred,000 in "enhance producing" investments (many times). in line with present day expenses of activity, an common yield in terms of earnings would be approximately (a) 5.5% on the earnings section and (b) a million.5% on the enhance section. So... $two hundred,000 @ 5.5% = $11,000 plus $two hundred,000 @ a million.5% = $ 3,000 equals $14,000 in predicted earnings in a 300 and sixty 5 days (much less trustee's expenditures and taxes of direction) in terms of enhance of central, the "enhance" section will earnings approximately 10% in an common 300 and sixty 5 days if that is exact assorted and invested alongside industry norms. some years, of direction, it must be in damaging territory; some years it is going to do greater valuable than 10% -- yet that is an common. So if 0.5 of your portfolio is invested in "enhance" investments that should point 5% enhance in the whole. Your "earnings producing" investments, nevertheless, will probably shrink in central value because of the fact as expenses of activity upward push (as they have) the central value of the bonds is going down. in case you're "breaking even" on the central section, you're doing sturdy, yet likely, you're in all probability dropping a pair of million% or 2%. Take the middle of that, and which ability your complete "enhance" in this variety of portfolio would approximately 3.5%, meaning the $4 hundred,000 would enhance in an common 300 and sixty 5 days to approximately $414,000. base line, "complete return" for a 50/50 asset allocation portfolio on an common would be approximately 7-8% annualized over the years.