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Every investor wants to get positive results and increase their investment returns. The good news is that getting positive roi calculation don’t have to be left to chance.
Here Are The Five Steps to Get Investment Return
There are some things that you can do to give you better odds at making winning investments. JourneytoBillions wants to share these five steps with you.
Make Riskier Investments
If you buy a lottery scratch off ticket for $1 the possible payout isn’t typically as large as that of a $10 scratch off ticket. It’s just like money sitting in a savings account only accruing a minimal amount of interest. But if you make a riskier investment, something like the stock market for instance, you increase your chances of a more positive investment return.
This doesn’t mean that you place all your eggs in one high-risk basket, but diversifying them is a great way to mitigate risk, loss and return.
Reduce Your Costs
No matter how hard you try, investing will cost you some amount of money. There are custodian fees, transaction fees, advisory costs, taxes and plenty others. Although there isn’t much you can do to avoid these fees, you can reduce them to some degree.
Do your research on potential investments, so you are more likely to only incur costs on those that are more likely to have positive returns. Weighing the possible short-term gain against the expected long-term gain can also help inform your decisions and in turn help you keep costs down.
Make the Most of the Liquidity Premium
Over time, illiquid investments make more money than liquid investments. It is this excess return that is referred to as “liquidity premium.” This is why illiquid investments are less expensive than liquid investments.These types of investments are often private assets, like private equity, private real estate and some direct business interests.
When the market isn’t at its best, many investors look towards liquid options, but going against this instinct can be very rewarding in the long run.
When you have competent and highly experienced personnel on your team, you tend to put yourself in a better position to get positive investment for small business returns. If you are your own investment manager and are not trained, it may be in your best interests to take a class or two so that you can make optimal calculations for positive returns.
Hiring the right people can make the difference between being in the red and being in the black Investment.
Keeping up with current trends can serve you well. Read and ask questions. Do your due diligence regarding your investments in real estate, potential and current, and you can increase your returns in ways you may have never imagined.
When you design your investment portfolio, it helps to consider these points so that you can be as successful as you can.
Every investment comes with its own opportunities and challenges. Get in touched with our investment archive, if you surround yourself with the right team and useful current information, you can improve your chances for positive returns.