However, there are a few MIPs that have performed consistently well,
yielding a substantial return in the range of 10 - 13 % for the last 5 years.
Not exact matches
In the long run both types of investment create capital that can
yield substantial positive rates of
return (above the current 30 and 50 year real bond rate) and result in both higher productivity and stronger labour force growth.
While the portfolio of high
yield bonds may offer additional
return potential, high
yield bonds are subject to
substantial interest rate risk.
In contrast, even though equities have substantially higher
yields, a
substantial proportion of these
returns can be deferred, which avoids near term taxation.
This is why there should be a
substantial yield or likely
return premium for investing where there is no liquid public market.