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Investment returns uncovered

Investment returns, known as Return on Investment (ROI), is the amount that is received by the investor once the investment period has finished. The higher the ROI, the better the fund is deemed to have performed.

In order to calculate the ROI, the benefit of an investment is divided by the cost of an investment, and the result is then displayed as a percentage or a ratio.

ROI is quite flexible in the sense that the cost of the investment is worked out by adding together everything that might have been used on order to make the investment. Due some this, some of the more indirect costs may be left out, and the formula can even be manipulated to make the investment appear more fruitful than it actually was, by leaving out some costs altogether.

If you have any questions concerning returns on investments, please contact one of our financial advisers.

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