What is average annual return on investment

Key return on investment statistics Average annual return on stocks: 13.8 percent. Average annual return on international stocks: 5.8 percent. Average annual return on bonds: 1.6 percent. Average annual return on gold: 0.8 percent. Average annual return on real estate: 8.8 percent.

What is a realistic annual return on investment?

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the Sɪmp;P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

Is 10% annual return reasonable?

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns.

Is a 5% return good?

In the case of the stock market, people can make, on average, from 5% to 7% on returns. According to many financial investors, 7% is an excellent return rate for most, while 5% is enough to be considered a 'good' return.

What is a average annual return?

The average annual return (AAR) is a percentage that represents a mutual fund's historical average return, usually stated over three-, five-, and 10 years. Before making a mutual fund investment, investors frequently review a mutual fund's average annual return as a way to measure the fund's long-term performance.