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Showing posts from May, 2017

How to Calculate Annualized Return on Investments

How to Calculate Annualized Return on Investments ? Previously, we had discussed about the Absolute Return on Investment , to calculate how our Invested money performing and seen how it differ from in terms of rupees as Absolute. Here, we can see to calculate the Annualized Returns on our Investments. Annualized Return can be computed as Percent (% p.a) per Annum. We can measure the returns by these method, is the better and accepted way to measuring the Investment Return. The basic purpose of Annualized Return is to standardize the investment period as though each investment was made only for One year. It helps to ease comparison of investments across Time periods. Annualized Returns can be denoted as [ % p.a ], otherwise, it is usually an Absolute Non-annualized return.  Annualized Return on Investment: (Return on Investment / Original Investment) X 100 X (1 / Holding period of investment in years) Or in simple terms,  ((End value - Beginning value) / Beginning value)  X 100 X (1 / H...

How to Calculate Absolute Return on Investment

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How to Calculate Absolute Return on Investment ? Return on an Investment is a calculation to assess how the investment is performing. As every investment have a group of Inflows and Outflows. The Comparison of the inflows and outflows is the Return for the investor from making the investment. Returns may be Positive (+) or Negative (-) . A Positive denotes the profit on an investment and Negative gives the loss. For eg:   Akhil bought a Real estate property for Rs. 30 lakhs and sold it to Rs. 40 lakhs Suresh bought a 100 shares of XYZ Company with the amount of Rs. 20,000/- and sold all the stocks for Rs. 15,000/- The above example tells that Akhil had a profit of Rs. 10 lakhs i.e the return on investment is Rs. 10 lakhs. Suresh had a loss of Rs. 5,000/- from his stocks. So, it denotes the Negative Return on his investment. Measuring Investment Returns: Returns can be measured by comparing the amount of Inflows and Outflows for the investment made in Absolute Rupee Terms. ...

7 Ways to Invest Life like a Zen

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7 Ways to Invest Life like a Zen (Zen Investing)   Investing is always like a Mantra. It focuses for a Long term in a silent way. I am not talking about the Speculation or a Short term, but for the Long term with a sip of Water. We know how the Buddha and Billgates created the Tremendous Empire. As they had a different goals to consider, but they had a life as a Zen. The Master Shunryu Suzuki said, Zen is not some kind of excitement, but concentration on our usual everyday routine.     For a Long term Investor too, there are few ways to invest his life like a habit of Zen.   Invest Regularly and Stick to Fit: The most basic of Zen thought tells 'Work your day with little things and without any connection. You may walk alone for five minutes a day, Helping others what you have, Learn a language daily for 10 minutes or save Rs. 10/- daily for your kid - This is the way, how Buddha and Billgates grown on their Duty. So, Invest Regularly with any amount, but stick to it...