Where to invest to get 10% annual return?
Diversifying Your Portfolio to Reach a 10% Return
A diverse portfolio could consist of 30% in a mix of value and growth stocks, 30% in index funds, 20% in bonds, 10% in real estate and 10% in alternative investments like P2P lending or commodities.
- Private credit.
- Individual stocks.
- Real estate.
- Fine art.
- Debt.
- A business.
- Private startups.
- Cryptocurrencies.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
Diversifying Your Portfolio to Reach a 10% Return
A diverse portfolio could consist of 30% in a mix of value and growth stocks, 30% in index funds, 20% in bonds, 10% in real estate and 10% in alternative investments like P2P lending or commodities.
There are several investment vehicles that have historically generated 10% annual returns: stocks, REITs, real estate, peer-to-peer lending, and more.
While 10% might be the average, the returns in any given year are far from average. In fact, between 1926 and 2022, returns were in that “average” band of 8% to 12% only seven times. The rest of the time they were much lower or, usually, much higher. Volatility is the state of play in the stock market.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
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 Market (Dividend Stocks) ...
- Real Estate Investment Trusts (REITs) ...
- P2P Investing Platforms. ...
- High-Yield Bonds. ...
- Rental Property Investment. ...
- Way Forward.
1 The best way to earn 12% interest on your savings is by investing in a high-yield savings account. High-yield savings accounts are offered by some banks and credit unions and generally offer higher interest rates than traditional savings accounts.
Which fund has the highest 10 year return?
No. 1 on the list is the ProFunds Semiconductor UltraSector Fund, which yielded 29.21% over the past decade. In second place is the Direxion Monthly NASDAQ-100 Bull 1.75X Fund, with 28.16%. And the bronze medal goes to the Rydex NASDAQ-100 2x Strategy Fund, which yielded 26.58%.
The Essence of the 10X Rule
At its core, the 10X rule mandates that one should set targets that are 10 times what they initially thought achievable and then expend 10 times the effort to reach those targets.
If you invest $10,000 and make an 8% annual return, you'll have $100,627 after 30 years. By also investing $500 per month over that timeframe, your ending balance would be $780,326. Exchange-traded funds (ETFs) and mutual funds are both excellent investment options.
Where Can I Get a 20% Return on Investment? Achieving a 20% ROI typically involves higher risk investments like stocks, cryptocurrencies, or real estate. Consult a financial advisor before pursuing such returns.
What is a good ROI? That's a tricky question to answer. The target ROI number varies significantly depending on the industry, size of your business, type of project or investment, and other factors. In general, investors want to see ROI of 5% or higher before investing in a small business.
- The S&P 500 is a stock market index composed of about 500 publicly traded companies.
- You cannot directly invest in the index itself.
- You can buy individual stocks of companies in the S&P 500, or buy an S&P 500 index fund or ETF.
- Index funds typically carry less risk than individual stocks.
| Investment Option | Safety Level | Returns |
|---|---|---|
| Senior Citizens Savings Scheme (SCSS) | Very High | 7.4%* |
| RBI Bonds | Very High | 7.15%* |
| Government Bonds and Securities | Very High | 6-7%* |
| Debt Mutual Funds | Medium | 6-8%* |
Gold is often considered a good investment for diversification, as it may be less correlated with other assets such as stocks or bonds.
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Funds.
- Stocks.
- Alternative investments and cryptocurrencies.
- Real estate.
| Investment Type | Safety | Liquidity |
|---|---|---|
| Money market mutual funds | High | High |
| Treasury Inflation-Protected Securities (TIPS) | High | High |
| High-yield savings accounts | High | High |
| Series I savings bonds | High | Low |
What is the safest asset to own?
The Bottom Line
Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.
Which investments give the highest returns? Stocks provide the highest average annual returns: 13.8%, on average, compared to 1.6% on bonds, 0.8% on gold, 8.8% on real estate and 0.38% on CDs, according to Fidelity.
Of course! The highest average 30-year geometric return was 13.7%, so it's definitely possible. At the same time, though, the lowest average 30-year geometric return has been 8.5%, so it's been lower as well.
There's a reason that 12% tends to be used as a benchmark, according to Blanchett. The average historical return from 1926 to 2023 is 12.2%, according to a monthly data set called stocks, bonds, bills and inflation, or SBBI.
And based on the history of the market, 12% is not some magic, unrealistic number. It's actually a pretty reasonable bet for your long-term investments.
