INVESTMENTS
TERMS
In investment parlance, "annualised" refers to the conversion of shorter-term rates of return into an annual rate. It is a tool to gauge an investment's performance over a year, irrespective of the actual period. The advantage of annualising returns lies in its ability to provide a common ground to compare different investments. For instance, it allows a direct comparison between a three-month investment returning 4% and a one-year investment returning 12%—both yield the same annualised return. Therefore, annualised returns serve as a valuable yardstick to evaluate the relative merits of various investment opportunities, enabling investors to identify those most likely to offer the highest return over a year.
#InvestingBasics #AnnualisedReturns #InvestmentTerms #FinancialLiteracy
Proudly Promoting Mauritius:
Mauritius Life | Veri Global | Property Finder
We are delighted to work together in promoting the beauty and opportunities of Mauritius.
Our websites, Mauritius Life, Veri Global, and Property Finder, are committed to providing valuable information, resources, and services related to Mauritius, its culture, economy, real estate, and more.
Please explore our websites to discover the rich cultural heritage, breathtaking beaches, thriving economy, top-notch real estate listings, investment administration, and knowledge that Mauritius has to offer. Together, we aim to showcase the best of Mauritius and assist you in making informed decisions about living, investing, and experiencing all that this beautiful island has to offer.