Understanding Stock Market Average Annual Return

Online GST Return If you have started getting involved with the stock market the chances are good that you will have come across the term 'average annual return.' This has nothing to do with individual stocks; rather it has to do with how all the stocks perform together on an annual basis.

It pays to understand what the average annual return on the stock market really means. If you don't you may be misled into thinking you stand a good chance of making some good money in virtually every situation. You could be fooled into thinking this no matter what shares you might have in your name.

Online GST Return Let's think about what 'average' actually means, and more to the point how we arrive at an average. To do this we take all the figures we are concerned with and add them together before dividing them by the number of figures we have. So let's say we have twenty years worth of results to look at - we'd divide the total by twenty.

Now when it comes to the stock market average annual return, the figure a lot of people have put on it is around 8%. That figure covers an eighty year period so we're not just talking about a few odd years here.

Online GST Return But what you need to remember is the word 'average'. Just because the average figure is 8% that doesn't mean you will be guaranteed to get a return on your investments that equates to that amount every year. Sometimes the return has been in the minus figures, which obviously would not be good news if you were looking to make a healthy profit. The market has been known to drop by as much as 33% in a single year.

Online GST Return  The lesson here is not to put too great an emphasis on the need to identify what those averages are. They are useful but you should not assume that just because someone claims to be beating the averages that you can do so as well. Moreover you should remember that it is never wise to take your eye off the ball when it comes to individual stocks. These are what you should really be concentrating on because you need to know which ones are working for you and which ones aren't.

If you are looking to pay Online GST Return then I will suggest to you that Advise24 will the best option for you. Because Advise24 is providing the best GST Return services in India.