Are you looking for ways to make your money work harder for you? Investing in assets that offer a consistent 12% return can be a smart strategy to grow your wealth over time. Here are five easy-to-understand investment options that have the potential to generate a steady 12% returns on investment:
Stock Market (Dividend Stocks)
Dividend stocks are shares of companies that regularly pay a portion of their profits to shareholders. By investing in stable companies with a history of steady dividends, you can earn both from stock price appreciation and the dividends they distribute. Although the #StockMarket can have some ups and downs, a well-diversified portfolio of dividend stocks can help you achieve a 12% returns on investment over the long term.
Real Estate Investment Trusts (REITs)
REITs are companies that own or finance income-generating real estate. By investing in #REITs, you can become a partial owner of properties like office buildings, apartments, or shopping centers. REITs typically pay out a significant portion of their earnings as dividends, making them an attractive option for investors seeking steady returns.
P2P Investing Platforms
Peer-to-peer (P2P) investing platforms connect individual borrowers with investors. By lending money to individuals or small businesses through these platforms, you can earn interest on your loans, often at rates higher than traditional savings accounts. #P2P lending can provide a diversified investment portfolio and a chance to achieve a 12% return or even higher.
One place for you to get started with P2P investing is Fello. Fello is your ultimate savings app which makes savings a rewarding experience for you. One avenue for your savings on Fello is through Fello Flo which is a P2P fund providing hefty returns of upto 12% p.a.
High-Yield Bonds
Bonds are #loans made to corporations or governments, and high-yield bonds, also known as junk bonds, offer higher interest rates due to their higher risk. While high-yield bonds carry some additional risk, they can provide a path to achieve a 12% return for #investors willing to accept a higher level of risk.
Rental Property Investment
Owning rental properties can be a lucrative investment, especially in growing real estate markets. By renting out a property, you can earn rental income and benefit from potential property value appreciation. With careful property selection and management, rental properties have the potential to yield a consistent 12% return or more.
Way Forward
Remember, while these assets have the potential to offer a 12% return, all investments carry some level of risk. It’s essential to conduct thorough research, diversify your investments, and align your choices with your risk tolerance and long-term financial goals. Consider consulting with a financial advisor to create a personalized investment plan tailored to your needs and circ*mstances.
Saving is important, and investing your #savings is a great way to grow your money and protect it from inflation.Fellois a simple and easy way to save and invest your money, and it makes the process fun and rewarding. Fello is a great avenue to develop a saving habit. The rewards make saving fun, and the investment opportunities make saving even more rewarding.
Fello is also a great way to protect your money from inflation. By investing your money in Fello, you can grow your money and keep it safe from the effects of inflation. With prudent investment decisions and patience, you can work towards achieving your financial dreams with these rewarding assets.
FAQs
Yes, it's quite possible to get around 12% returns in the long run. Why do we say that? Because NIFTY 50 has delivered more than 8% returns on 95 out of 100 occasions when an investor stayed invested for at least 10 years.
Is 12% a good return on investment? ›
While quite a few personal finance pundits have suggested that a stock investor can expect a 12% annual return, when you incorporate the impact of volatility and inflation, 7% is a more accurate historical estimate for an aggressive investor (someone primarily invested in stocks), and 5% would be more appropriate for ...
Is it possible to earn a 12% return on an investment and if so, why? ›
The reality is that you can! There are mutual funds out there that have averaged 12% annual returns over the course of their history—you just have to know how to look for them. But before we go there, let's cover some of the basics about the average mutual fund return that you need to know about first.
How does Dave Ramsey get 12 percent? ›
Orman and Ramsey haven't just plucked the 12% figure out of thin air. It stems from the historical average annual return of the S&P 500 (with dividends reinvested). Ramsey's website cites a New York University dataset which says the S&P 500 average from 1928 to 2023 was 11.66%.
Where can I get a 12 return? ›
Mutual Funds:
Among all, equity mutual funds give higher returns by investing in different stocks in various sectors. It does not require expertise from the investor. You just need to find a good mutual fund company. The expected returns from equity mutual funds range from 12% to 18% annually.
How do you calculate 12 return on investment? ›
In simple terms, it tells you how much profit or value you gained (or lost) relative to the amount of money you initially invested. You can calculate ROI using the simple formula, ROI = Net profit/Cost of investment * 100.
Is 12 annual return realistic? ›
A 12% retirement return assumption is 'absolutely nuts,' expert says. Here's a realistic rate to expect. While a 12% annual rate of return has been suggested as possible in retirement investing, that's not always achievable.
How much money do I need to invest to make $1000 a month? ›
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
Which mutual funds give 12 percent return? ›
The large cap mutual funds that have delivered healthy CAGR returns of more than 12 percent per annum in the past five years include Nippon India Large Cap Fund, Canara Robeco Bluechip Equity Fund, ICICI Prudential Bluechip Fund, Baroda BNP Paribas Large Cap Fund, SBI Bluechip Fund and HDFC Top 100 Fund.
How to get 12% returns? ›
Getting a 12% return on investment requires taking on higher risks, such as investing in equity mutual funds, individual stocks, or alternative assets such as real estate or peer-to-peer lending platforms. It's important to have a long-term investment horizon and diversify your portfolio to manage risks.
Stock exchange markets are considered inherently unstable and unpredictable, however, in the long run, they eventually tend to rise, and though a return as good as 15% each year might not always be achievable in the stock market, an annual return of around 15% may be possible over the foreseeable future, but remember, ...
What pays the highest return on investment? ›
The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices.
Is 10% return on investment possible? ›
If one type of investment drops your entire portfolio won't take a hit and you'll be able to take advantage of potential strong returns with other assets. This way if one asset is returning 15% but another drops to only a 2% return, it's still possible for your entire portfolio to reach a steady 10%+ return.
