Finally you will often hear us say that trying to guess the best time to either enter or exit markets is folly – none of us have a crystal ball. Determine what your return on investment will be by examining these essential factors. There are three tax benefits to any investment: 1) tax-deductible contributions, 2) tax-deferred growth, and 3) tax-free withdrawal of growth. And so, we are able to calculate with great precision the value of such an investment at the end of each year. In contrast, in industries such as chemicals and electronics, a firm cannot survive, if it follows a policy of ‘make-do’ with its existing equipment. With the incre… Economic factors are broad-based circumstances that affect many people, who compose a market, and therefore affect the equity markets. Finally, we’ll explain why longer-term bonds can be expected to return more than shorter-term bonds and how lower-grade bonds should be expected to return … The key is to have a clear investment strategy… and to then stick to it. Adoption could suffer due to technical limitations or … First of all, the earlier you can start investing allows the magic of compounding of investment returns to get to work. Understanding taxation of your investments is crucial to maximizing returns. Investments can be great wealth building tools that you can use to multiply your savings. Ask our Investing expert. FACTORS AFFECTING RISK AND RETURN OF FINANCIAL STOCKS IN STOCK EXCHANGE Maryam Nazari Nafooti1, Nikoo Mohammad Sharifi2, Faezeh Rashid Shomali3, ... Rate of return on the investment portfolio is a set weighted average of return … If you happen to have a good size of investment portfolio, then the majority of your money will be in this category, where only one tax benefit … Revenues depend on … Email: reception@orlamurray.com. Current Events. Changes in these factors make the investment … In the credit crunch of 2008, many banks were short of liquidity so had to cut … Macroeconomic conditions affect investment rates of return. After all, the greatest stock selector in the world will have little impact on your investment returns if only 10% of your money is in equities… Asset allocation is an important driver of investment returns, and is a factor that we spend a lot of time considering when building investment portfolios. So, we’re going to set out below the factors that we see as potentially having the biggest impacts, focusing on the factors that you have some control over – either yourself or more likely with some assistance from us. When the demand for capital increases, the cost of capital also increases and vice versa. The demand is influenced greatly by the available market opportunities and www.orlamurray.com All other rights belong to their respective owners. We will always look to bring your focus back to the plan – what you are trying to achieve, the investment strategy put in place to get you there and to keep you focused on that. Having the right mix of stocks and bonds in your portfolio and selling off low-performing investments can also work in your favor during tax season. Economic slowdowns lead to low employment, which usually means lower profits and stoc… It is the minimum return which investors wish to get on their equity stocks. Just because one investment house outperformed in recent years is not very meaningful… Understanding an investment manager’s philosophy and strategy is a far better guide than recent performance when choosing a fund manager. ... Factors affecting your return… Factors affecting international equity return Macroeconomic factors Economic factors affect corporate profits, which influence stock prices and equity returns. Whether you’re an expert or a novice, it’s important to keep in mind that there are certain uncontrollable factors that will always have an impact on your investments. D 1 = Dividend paid in period … lf the management is progressive and has an aggressively marketing and growth outlook, it will encourage innovation and favor capital proposals which ensure better productivity on quality or both. Photo credit: ©iStock.com/petdcat, ©iStock.com/Alejandro Rivera, ©iStock.com/Mitja Derenda. 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