what should be the minimum rate of return on your investment

[stockbroker]

It is well known that the inflation factor impacts the value of money to a great extent. It is worthwhile to note that goods worth $100 today would cost you $103 after a year. The 3% increase in the cost of the goods can be attributed to the rise in inflation. It is thus clear that the rate of return on your investment should atleast be greater than the rate of inflation.

Any supporting thoughts?

[Decorator]

Well said buddy. However you haven’t considered the systematic risk on your investment. So minimum rate of return should be greater than the sum of rate of inflation plus the risk on your investment.

[Investor]

Hi dude. Not every investment is risky .However greater risk is associated with common stocks and derivatives. In fact the risk on investment, if necessary , needs to be accounted to arrive at the minimum rate of return.

[Insurer]

Many people invest without knowing the nature of investment. Surely one needs to carefully analyze every aspect of investment before involving themselves. Surely the minimum rate of return on any investment should include the risk on the investment and inflation rate .In fact long term investment in stocks with proper analysis and review would generate high rates of return on investment.

[money3]

Minimum return on investment much more than inflation if a Mutual funds five you 12 % return on Investment you should also add inflation to it.. so for example for example Wachovia Mutual funds manager promise you to give you 12 % return on investment but the real value of return on investment is 8% because 4 % in Annual Inflation on dollar.. and remember inflation is rise in 2008.. and will continue to rise as we are living in recession! a huge recession!

[bika]

It depends on many things such us how much you want to earn how much money will satisfy you. If you have a lot then your minimum rate is high than who has not enough money.

[admin]

this is a little silly question , as you have to look for inflation and how much you really like to earn, what is your satisfaction level, some people say as much as possible were other say Thousand of percentage.. the real number is 12% in minimum because you still need to subtract inflation and fees