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


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

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

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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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.

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!

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

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.

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