How Is Investment Portfolio Rate Of Return Calculated? - Adults Investment Plan

Описание: How Is Investment Portfolio Rate Of Return Calculated? Are you curious about how to measure the performance of your investments over time? In this video, we'll walk you through the different methods used to calculate the rate of return on an investment portfolio. You'll learn how to determine the percentage gain or loss based on the starting and ending values of your investments. We’ll also cover how to handle situations where additional cash flows, such as deposits or withdrawals, might affect your calculations.

We explain the differences between simple return calculations, time-weighted returns, and money-weighted returns (also known as internal rate of return). Additionally, if your investments generate income like dividends or interest, we’ll show you how to include these in your calculations. For longer-term investments, understanding how to compute the compound annual growth rate (CAGR) can provide a clearer picture of yearly growth.

Knowing how to accurately evaluate your investment performance helps you make smarter decisions, compare different portfolios, and track your progress effectively. Whether you're managing your personal investments or assessing a financial advisor’s performance, mastering these calculation methods is essential. Join us for this comprehensive overview, and subscribe to our channel for more helpful tips on investment management and financial planning.

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About Us: Welcome to Adults Investment Plan, your go-to source for mastering investment strategies and financial literacy. Our channel is dedicated to helping you navigate the fundamentals of investing, from building an investment portfolio to understanding the stock market, mutual funds, ETFs, and long-term investment strategies. We'll guide you through assessing risk tolerance, asset allocation, retirement planning, and tax-efficient investing, all tailored to your financial goals and budgeting needs.