Let’s talk about something on which I’ve been researching for a while now. It is a new idea of investment. For so long, hasn’t it felt like we’ve been chasing numbers, returns, and growth, often at the expense of, well, everything else? We see the news about the climate disasters, the widening inequalities, etc. It’s hard not to feel…
Dividend income is a stream of earnings paid by companies to shareholders, representing a share of the company’s profits. It’s typically paid quarterly or annually, based on each share held, and can be an excellent way to earn a steady cash flow from your stock investments. For investors seeking passive income, dividends offer a unique…
Let’s discover which investment alternative is better for monthly income generation. Should we park our money in a 10-year fixed deposit with monthly payouts? Or is the allure of a rental income from a residential property more enticing? We’ll analyze these two investments using a rule of value investing. We’ll estimate their intrinsic value and…
The objective of this article is to highlight the importance of building the right thought process to practice investment successfully. Beginners worry about how to invest money wisely. In this article, we take the matter of wise investment from its very core. We discuss what, why, and where about investing from the perspective of a…
The purpose of this article is to highlight the necessity of keeping the investment portfolio well diversified. We’ll see in this blog post how investment diversification is not only about buying different types of assets, it is more about keeping a balanced portfolio. For quick answers on the diversification strategy, check the FAQs Introduction What…
How do you calculate the CAGR for a portfolio? When I first saw this query, I thought, why someone asked this question? Frankly, I misjudged the depth of it. Hence, for a few days, I kept it unanswered. But something told me that there is more to this question than what’s visible. Why? If you…
When it comes to the use of jargon, probably the world of equity investment will be among its heavy users. Two commonly used words of this field are Alpha and Beta. The term beta is in use for a long time. But the trend of alpha is more recent. What are alpha and beta? Alpha…
The concept of pay yourself first has tremendous powers of making one financially independent. How? At least, it builds a strong foundation for it. “Pay yourself first” was a phrase which was first used in a book called The Richest Man in Babylon. But this simple statement has been converted into a profound personal finance rule…
![ROI Formulas: CAGR and XIRR, Meaning, Full Form, Use in Excel [Mutual Funds]](https://ourwealthinsights.com/wp-content/uploads/2018/04/How-to-measure-investment-returns-Image.jpg)
Generally, we invest money in two forms. The first is in lump-sum, like a one-time investment. We also invest systematically, small-small amounts each month. How to measure return on investment (ROI) in each case? We all know how to do it, right? To measure returns we commonly use this formula: Returns = profit/investment x 100….
