What Is Return Oon Investment
May 24, 2009 // Posted by: Insider // Category: Interest Rates, Investments, Risk & Return
Return on investment may simply be defined as the percentage of profit or loss in an investment. It is a commonly used kind of performance measure that evaluates the efficiency of a particular investment. You should understand that what you make depends on how long you invest and easy it is for you to withdraw it when you need it.
The return on some investments is easy to know. For example if you invest in savings accounts or in Guaranteed Investment Certificates, you will be able to calculate how much you are going to make out of the investment. However it is not so easy to tell with some other investments. These investments include stocks, where market prices are not predictable.
It is important to understand that it is not always possible to get good returns from your investments. Sometimes there may be some unavoidable circumstance that may negatively affect your investment.