|
|
We all rely on investments to put our excess money to use. By excess money we mean the disposable income after our day-to-day living expenses are covered.
Investments take many forms.
The baisc criteria is that you allocate a sum of money to purchase a particular asset in order for it to give you a return in ecess of your initial investment. Returns are generally measured in what an investment can earn for your per annum. This is expressed as apercentage of the amount invested which is returned to you per annum.
Put simply, if you invest €500,000 in an asset and you get a return on this of €50,000 then your gross reurn is 10%.
One can invest in property, for example, in order to achive a return by means of renting that property.
|
|
|
