How can you get Returns from investment?

Investments can be a great way to earn some great returns from the market. However, no investment in the world can guarantee you a return. Almost all investment forms have some sort of risk associated with them. Therefore, before investing it is important out find out the perfect investment option for your need.

There are multiple investment options available in the market. Some of the common investment options include stocks, commodities like gold, silver, crude oil, property and real estate, mutual funds, government bonds etc. You first need to figure out where you want to invest. AN optimum investment portfolio will have a mix of all these to achieve diversification for hedging risk up to some extent. Selection of investment option will also depend on your risk appetite ad investment goal.

When you buy a stock or bond or commodity at a price and sell it later at a higher price, you earn some return on the trade. The sole motto of every trader entering in the market is to buy at a low price and sell at a higher price. Apart from this, companies also announce dividends at times. When a company is in profit and decides to share a part of it with the shareholders, it is known as dividend distribution. Dividends are a great source of earning some extra returns from your investment in the stock market.

The total return from your investment is the sum of all the profits you earned from a particular holding. Proper research helps you in selecting potential stocks which have a possibility of yielding returns in the form of price hikes or dividends.

Short selling is another strategy used by traders for getting returns. In short selling, trader extract profits out of falling markets. They sale a stock first at higher price and buy it later at a lower price to earn returns.