Basic Types Of Return On An Investment

 

Investment

When it comes to making money, there’s no one size fits all solution. Different investors will have different priorities and need different types of returns on their investments in order to be successful. However, there are some basic types of ROI that all businesses should be aware of. In this post, Rahul Gandhi CPA goes over each type of ROI. By understanding these concepts, you’ll be able to make more informed decisions about what to offer to your investors.

Rahul Gandhi CPA Lists The Types of ROI

There are four primary types of return on investment (ROI): financial, social, environmental, and spiritual.

Financial ROI

What is financial ROI?

Financial ROI stands for Return on Investment.In basic terms, it is a metric used to measure the profitability of an investment. To calculate financial ROI, the benefits of an investment are divided by the costs of the investment. The resulting number is then expressed as a percentage or a ratio.

Why is financial ROI important?

Financial ROI is important because it allows investors to compare the profitability of different investments. It also allows them to assess whether an investment is worth pursuing.

What factors affect financial ROI?

There are several factors that can affect financial ROI. These include the type of investment, the size of the investment, the timeframe of the investment, and the risks involved.  

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