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Asav Patel

5% Return a Month

Recently one of my friend ask me that, I am getting tired of 5% return per year. Are there any Investments in the world which can give 5% return a month?

Well, most of the people in this world want to make money at this much faster rate. Now, let us discuss that weather it is possible or not?

Well, a 5% return per month means 60% return per year. The Stock market can give you anywhere between 10-20% compounded annual return which is the highest in the world. No other asset class (Bonds, Gold & Real Estate) can give you this much high return per year.

So be realistic. And don’t try to speculate in the stock market or anywhere else. Rather than that set the realistic goals. If someone offers you this much higher return than probably it’s a scam or a Ponzi scheme. So stay away from it.

However, there is one way to get this much return in real life. But that is extremely risky and demands huge capital to Invest in it. I am talking about Private Equity also known as Venture Capitalism. This means that you Invest your money in the start-up seeding stage businesses. The logic is that, the start-up businesses appreciate at much faster rate than the already established businesses.

Sometimes the start-up Businesses grow at the rate of as high as 5000% per annum also. But well, The minimum amount that you can invest in the start-up businesses via venture capital funds is in millions and there is a substantial risk of losing all of your money. This is because the chances of any start-up Business to fail are very much.

So either forget the 5% return a month or go for Private Equity.