Real estate returns
Mainly, there are three kinds of returns on real estate investment - expected return on investment, required rate of return on investment and actual return on investment. Expected return is the amount of profit or loss a real estate investor expects to make from an investment property, which has expected or several known potential outcomes. Knowledge of required rate of return on investment helps real estate investors assess and evaluate investment properties before deciding whether or not they should buy them. In other words, it is the necessary minimum return the investor needs for considering a particular investment property. The actual return on investment is the money one gains or loses from an investment property during a period of time, in comparison to the initial value of the investment. In simpler words, it is the money that real estate investor actually receives from their investment in the said property.
Equity investment returns
Investments in equity funds are aimed towards generating high returns. The money will be parked in shares of firms of different market capitalization. The returns from equity investments can only be estimated, and there is no guarantee on the returns earned. Among the various categories, equity funds have been seen to deliver the highest returns. On an average, they have generated before-tax returns within the range of 10% to 12%. These returns, however, may fluctuate on the basis of market movements and economic conditions.It must be noted that an equity investor should not expect to earn a steady return annually, rather there will be ups and downs, which normally shall average out overtime. Should the individual diversify investments and hold a basket of equity shares, he or she must ensure to invest consistently and stay invested for the long-term across market cycles. The return is likely to be near the long-term average.
