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Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Is 10% return on investment considered good for 6 months time with no/extremely low risk?

I know its OK for stocks but they are volatile and could lose you money over next 6 months. If its surefire money in pocket is that considered good ROI?

3 Answers

  • Anonymous
    1 month ago

    There's no way you could earn that high of a return at zero risk. US treasuries and bonds pay a fraction of that and are considered the lowest risk. Above that there's always a trade-off. The higher the return the greater the risk. You could easily make a 10% annual return but there is probably risk you're not aware of. To do that in 6 months is even more risk. 

    There are people who spend their entire lives looking for microscopic gains relative to risk. If even a .0001% disparity existed they would pour money into it until the gain was gone. 

  • 1 month ago

    I get the 7% thing but I am talking no risk that would essentially bank me 100% chance of 20% return over a year. 

  • 1 month ago

    It depends on when you got the 10% ROI.

    You will average about 7% per year.  This means that some years you will have negative returns (unless you are really really lucky) and some years you will have super high returns (unless you are super super unlucky).

    Having 10% returns right now over the current 6 month period, is not super unusual.  My returns for 2019 were 32% and 2020 28% and I'm sure many many people had way better returns then I did-- I still am super disappointed I didn't pull the trigger on Amazon in July 2019 - up about 60% (it matches my own return but still I think it would have been good to have). 

    In response to the comment:

    I have no idea what investment you have that is "no risk" that is getting 20% increase per year.  If it really is consistent and really is "no risk" it is fantastic.  I just don't think there is an investment like that.

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