How much can I expect to earn?
Stocks, funds, IPOs
The average annual return on the U.S. stock market is 15%, but it varies based on the instrument. Shares can bring up to 40% annual yield, funds - up to 20%, Bonds - a less profitable but protective instrument, the annual return on them can reach up to 6%.
By investing in securities, you can get return in several ways:
Option 1. Difference in price
The golden rule of the market is to buy shares cheaper and sell higher. The difference in price is your profit. However, you should not play on price volatility. By choosing strong companies with great growth potential, you are likely to get a decent return in a few years if you invest in them now.
Option 2. Dividends
Successful companies regularly distribute net profit among their shareholders - they pay them dividends. The average dividend yield on securities in the Stock Catalogue was 2.25% per year.
Whether a company pays dividends, as well as the amount of the last paid dividend, can be found in the share card.