When you invest your hard earned money, how much of a return do you expect to get from your investment ? Those who are new to investing will often say, “I want to earn a return of 20% to 50% on my investment—every year.” But is this realistic?
What is a reasonable rate of return to expect on your investment? Is 10% of return a realistic one? Of course it also depend on types of investment and asset class.
If you're a new investor and you expect to earn, say, 15% or 20% compounded on your blue chip stock investments over decades, you are delusional. It's not going to happen and unrealistic.
One of the main reasons why new investors lose money is because they chase after unrealistic rates of return on their investments, whether they are buying stocks, bonds , unit trust, real estate, ETF or any other types of asset class......