You can play around with the expected rate of return and your monthly (or annual) contributions to see how they affect your future returns. For example, if you have a specific goal, you can see how much you need to invest based on your specified rate of return. Low – you’re generally comfortable with achieving a low level of potential return on your investment sasol firm coupled with a low level risk of investment loss. Very low – you’re generally comfortable with achieving a very low level of potential return on your investment coupled with a very low risk of investment loss. High – you’re generally comfortable with achieving a high level of potential return on your investment coupled with high risk of investment loss. Low – you’re generally comfortable with achieving a low level of potential return on your investment coupled with a low level risk of investment loss.
Why choose our Investment Account?
The safe-and-sound investments sometimes barely beat inflation, if they do at all. Finding the asset allocation balance that’s right for you will depend on your age and your risk tolerance. You don’t necessarily have to research individual companies and buy and sell https://www.liberty.co.za/ stocks on your own to become an investor. In fact, research shows that this approach is unlikely to earn you consistent returns.
How do you minimize risk while still earning a return?
The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. They may have other tax implications, and may not provide the same, or any, regulatory protection. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin.
Flexible Savings Plan
High – you’re generally comfortable with achieving a high level of return potential on your investment coupled with high level of risk of investment loss. Low – you’re generally comfortable with achieving a low level of return potential on your investment coupled with a low level of risk of investment loss. Very Low – you’re generally comfortable with achieving a very low level of return potential on your investment coupled with a very low level of risk of investment loss. In investing, there’s generally a trade-off between risk and return. The investments with higher potential for return also have higher potential for risk.
Pensions & retirement calculators
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Investment goals
But one of the best ways to minimize that investment risk is ensuring your portfolio is diversified. Diversification is a financial strategy that spreads your investments across assets to reduce risk and exposure to market volatility. That means holding a portfolio that includes different types of investments, and different investments within the categories outlined above. This investment calculator will calculate how much your investments will grow based on your planned contributions, timeline, rate of return and compounding frequency. Enter how much you’d like to start investing with and how much you can add each month. The calculator will then show you how the value of the investment could change over time, depending on the market performance.
- You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses.
- And, as in life, there are different tools for different jobs.
- Negative returns are possible and the entire investment could be lost.
- The profit (or loss) you incur is your "return on investment." Thanks to compounding returns, the longer you leave your money invested, the higher your potential returns could be.
- Investing is a fundamental strategy for growing your wealth as you plan for the future.
Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns https://www.psg.co.za/ for sterling-based investors. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk.
