The rate of return on an investment is calculated by dividing the capital gain or loss plus the cash flows by the initial investment amount.

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There are 4 main types of investments:
Shares. 
Property. ...
Cash.
Fixed interest.

Often, people take investment to be about buying and selling shares only. You buy a stock or bond, with the hope that its value will increase over time. Although investing comes with the risk of losing money, should a stock or bond decrease in value, it also has the potential for greater returns than you'd receive by putting your money in a bank account. Thus the common clubbing of investment and share investing.


The rate of return on an investment is calculated by dividing the capital gain or loss plus the cash flows by the initial investment amount.






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