Top 2 Ways To Increase Returns

Top 2 Ways To Increase Returns

Increasing your portfolio returns can help improve your odds of achieving your goals, here are a few things to think about;

1.) Change your level of risk
Conservative portfolios can increase their long term expected returns by increasing their level of risk.

Aggressive portfolios can increase their long term expected returns by decreasing their risk. It’s counterintuitive but simple; actual returns are always lower than average returns when there is volatility in the portfolio.

$100 with 2 years of returns of 4%= $108 with 4% average return

$100 with 1 year of -10% and 1 year of 15%= $103.5 with 5% average return

2.) Don’t rely on your emotions
We’re not naturally wired to be good investors. “Scary” markets evoke the fight or flight reflex when the prudent move is to analyze the cold, hard facts.