Investment Returns and Expectations

What investment returns should you expect with different investing goals, risks, and durations?

 

The Average Investor

The average investor over a medium-long term time frame and with proper investment planning can achieve returns above 8% compounding annually. However, less than half of people are actually invested in the stock market despite it being a recommended part of an individual’s portfolio (with properties being the other “must-have” recommendation). Consider that the average long-term market returns are as follows:-

  • Bursa Malaysia: 8.9%
  • US Markets (S&P 500): 9.8%

Note: Most people are closer to average than they think. You’re not as good as you think you are hotshot with your lucky streak. And you’re not going to fail forever even if you made some mistakes.

 

Key Questions to Consider in Investing

  1. What is your personal investment plan?
  2. What is your capital, and additional investment fund flow?
  3. What is your investment timeline/horizon and investment goal?

 

Investment Assets Consideration

Investment AssetRiskDurationReturns
EPFLowLong6%
FDLowShort/Med/Long4%
EndowmentsLowLong6%
AnnuitiesLowLong5%
Private Pension SchemesLow/MedLong6%
Low-Risk BondsLowShort/Med/Long5%
Gold and precious metalsLow/MedShort/Med/Long2%
PropertiesHighMed/Long15%
Shares InvestingHighMed/Long15%
Shares TradingHigh/Very HighShort25%
ETFsMed/HighMed/Long8%
REITsMed/HighMed/Long6%
Unit TrustsMed/HighMed/Long6%
ForexHigh/Very HighShort25%
CommoditiesHigh/Very HighShort12%
CryptocurrenciesVery HighShort/Med200%

Note: Risk, duration, and returns are somewhat subjective based on an average or most common approach.

 

More Info

 

 

 

What are your investment returns expectations?

MyPF
Follow Us

MyPF

Admin at MyPF
Helping you to simplify and grow your Personal Finances.

Follow MyPF.my to get the latest Personal Finances updates and insights!
MyPF
Follow Us
MyPF

MyPF

Helping you to simplify and grow your Personal Finances. Follow MyPF.my to get the latest Personal Finances updates and insights!

One thought on “Investment Returns and Expectations

  • November 18, 2017 at 8:13 pm
    Permalink

    For any classes of investment, the risk fluctuates greatly from person to person due to information accessibility and application of knowledge relative to the others.

    Hi YZ, thanks for sharing your thoughts. Yes it does differ depending on not only the asset class but also the individual investor.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

MyPF.my