Skip to main content

What affects Investment Returns

Best SIP Funds Online 

There are five key factors that determine the general rate of return you can expect on your investments:

1) Your investment objective
2) Your age and financial responsibilities
3) Your liquidity (availability of funds)
4) Your risk-bearing capacity
5) Your investment timeline

First, you should have a clear objective before investing your money. The objective could be for the ultimate goal of a property purchase, children's education and marriage, retirement planning and so on. It could also be a near-term objective of saving for a foreign trip, or buying a bike. Once you have an idea of that objective, then some of the other factors will fall into place in guiding your investment decisions. Second, your age and financial responsibility play a vital role in any investment decisions. By and large, investment at a young age is beneficial to your long-term financial health as youngsters usually have fewer financial responsibilities such as spouses, children or retired parents under their care. Furthermore, it's never a bad idea to start building your financial knowledge earlier on in life, but it's no sin if you didn't —even if you are further along in life, organising your financial future can still pay off handsomely over the years to come. Third, your availability of funds is an important consideration. If you have debts to pay off (e.g., a car or home loan), you may face obstacles in making regular investments. There's no problem at all with that; you don't want to be in the position of having a debt payment you can't meet because you put money in the stock market hoping for a quick gain but the market dropped. When making investments, you need to determine how soon you will need the money, and if you have available cash lying idle, it pays to think about how best to deploy that.

With that in mind, one of the most critical factors next affecting investment decisions is your risk-taking ability. An individual's risk-bearing capacity should be higher at a younger age— younger investors can take advantage of the power of compounding over the long-term and can withstand the swings of the market due to recessions or global crises. However, even at a younger age, if you determine that you'll need your funds very soon, it's generally not advisable to put money in the stock market. So the old investment advice of 'higher risk, higher return' is something that all investors should heed before they invest—in your younger years, you can accept more volatility by way of the stock market with the prospect of higher long-term rewards.

All of this flows into the final point, namely, that the timeline of your investment is the fifth important factor in determining your investment return goals. If you think you will need funds very soon, it's extremely risky to put those funds in the stock market, as markets can swing heavily in either direction on virtually any news, whether or not it is relevant to the stocks in which you're invested. Now in India, fixed deposits, gold and real estate are generally the most preferred investment options. However, if your timeline is such that you can think three plus years ahead (ideally five or more), equity investments have the potential to generate very good returns. Unfortunately, it seems that Indian investors could be better informed about the investment opportunities in the stock market.




SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now