If shareholders can
make a higher return on equity elsewhere, you may be in trouble: They may decide that some other company is a better investment for them and pull out their funds.
Not exact matches
With debt financing, the fixed repayment schedule and the
high cost of loan repayment can
make it difficult for a business to expand while with
equity financing, money is invested in the business in exchange for
equity - there is no fixed repayment schedule and investors generally have a long term goal of
return on investment.
Moreover, a sustained move toward
higher inflation is a risk to most investors and investment strategies, given that rising inflation has historically been a drag
on equity and bond
returns,
making diversification beyond mainstream asset classes more critical.
Taking
on more
equity risk when the expected future
returns are lower than in the past and downside risks
higher makes little sense to me.
This is characterised by a preference for short - term business loans, centralised credit - scoring techniques to
make decisions, a need for
high quarterly
returns on equity and a strong preference for collateral.
With debt financing, the fixed repayment schedule and the
high cost of loan repayment can
make it difficult for a business to expand while with
equity financing, money is invested in the business in exchange for
equity - there is no fixed repayment schedule and investors generally have a long term goal of
return on investment.
The ministry argues that
high management fees
on private
equity investments
make the achievement of a satisfactory
return from the asset class too uncertain.
Since
equity mutual funds deliver substantially
high returns on a long - term basis, the expense ratio does not
make a big difference.
Then again, there are many risks that Wall Street takes
on where the probability of ruin is
high enough to happen at least once in a lifetime, but adequate capital is not held because protecting against the meltdown scenario would
make the
return on equity unacceptable.
Equity may or may not result in a
higher return, depending
on the projects performance, which
make it more risky.
Hello I would like to share my master plan of new जीवन anand policy My age is 30 I have purchased 7 policies of 1 lac sum assured and each maturity year term 26 to 32 I purchased in 2017 Along with I have purchased 3 policies of same jivananad of 11lac each Maturity year term 33,34,35 Now what will I have to pay is rs, 130000 premium per year means 370rs per day At age of 55 in year 2047 I will start getting
return, of, 3lac maturity per year till 2054 For 7policies of i lac I buyed for safety of paying next 10 years premium of 130000 As year by year my liability goes
on decreasing and at the age of 62 to 65 I get my major part of maturity amount around 16000000 one crore sixty lac Along with 4000000 sum assured continued for rest of life So from above example it is true that you can
make money to
make money for you You can enjoy a large sum by just paying 370 per day and you will feel you have earned 19000000 / 35 years = 1500 per day And assume if I die after 5 years then in this case also my spouse will get 7500000 as death claim against 650000 paid premium Whats bad in this A asset is getting created for you It is a property of 2 crores which you are buying for 35 year installment If you
make fd of 2000000 Lacs against this policy u will get 135000 interest per year to pay for 35 years If u buy a flat for 20 lack in 2017 there is no scope of valuation of Flat will be 2 crores But as I described you are creating a class asset for your beloved easily just investing 10500 per year for 35 years And too buy a term of 50 Lacs with it And rest you earn deposit in ppf Keep in mind if you will survive then only ppf will create corpus for you but in lic your family is insured to a
higher extent till 1 crore with term including And its sufficient if you are earning 100000per Month no problem for investing of 10 % in New जीवन anand with rest 90 % you go with ppf, mutual funds,
equity, gold, lottery, real estate any thing but keep 10 % for new jeewan anand it's a class if you understand it properly and after all if you rely only
on term there are more chances of rejecting claims as one thing is sure cheap things just come under warranty but lic brand is guaranteed because in case of demise if your nominee doesn't get claim then your all hardwork is going to be waste so think and invest take long term and bigger sum assured for least premium You can assign your policy for taking flat or property it is a legal asset of you But term never.
Steve Roberts, senior managing director in the New York office of Grubb & Ellis, says private
equity investors will be forced to take
on more risk if they hope to
make returns in the teens or
higher.
Your
return on equity is actually
higher (about 10 %) with all the mortgages intact, which is why leverage
makes so much sense.