ROI – Definition – RETURN ON INVESTMENT
Investors who are looking to invest need to realise that investments have to be scrutinised very thoroughly. In this day and age there is always someone out to take advantage of those who do not understand the risks and do not thoroughly investigate either the investment itself or the people behind the offering.
There are a great many opportunities to get the best ROI on your investment if you know where to look. It is always prudent to be aware of who is running the program – is it a person or a company. If it is a person one should do a Google search and see if there are any adverse remarks about the person. The same applies if it is a company. Look into the background of the company and check out who is running it.
ASSET BACKED INVESTMENTS
There are some really great Asset Backed Investments that are producing 12% plus ROI and the best part of that particular investment is that you can secure the Asset by registering a PPSR. For those who do not know what a PPSR is – it is a Private Personal Security Register where you register your interest over the asset. This means that no one can abscond with the asset. The PPSR is an Australian Government initiative and administered under an Australian Finance Authority.
With most asset backed investment people are not aware of this instrument or safety net of protection. These are the details that you have to look into before launching into one of these ROI Investments. They can and are very lucrative and can achieve a good income in a short space of time.
RETURN OF INVESTMENT
There is an upside to this kind of investing in that you get a monthly income while the capital is protected and at the end of the term your capital is returned – IN FULL. So, not only do you enjoy a monthly return but you get your capital back. This type of investment is of particular benefit to those who have little to invest because you can compound the interest. Compounding your interest is a necessity in the current financial climate.
Compounding interest grows the nest egg fairly quickly. If, for example you invest AUS$25,000 @ 12% the return would be AUS$3000 per year or AUS$250.00 a month and the interest is paid monthly to your nominated account. To enjoy the fruits of compound interest you don’t spend it. In some cases a smaller investment is offered which is then administered through a Trust run by an accountancy firm. Imagine if you multiplied AUS$25,000 x 4, to AUS$100,000 then the interest rate would increase to 13.5% in this scenario.
Terms are also something that should be ascertained BEFORE entering into any investment. This particular investment I am using as an illustration is for two (2) years. That is the minimum however in this case we know that a five (5) year term is available.
This particular Asset Backed Investment is available globally and is a great opportunity for other countries to take advantage of the offering. Australia is a stable country with a sound economy and as such attracts investors from all around the world.
The offering is particularly attractive for any self funded Super nominee. Super Funds, or Pension Funds as they are known in other parts of the world are also able to take advantage ot the stable economy in Australia and can safely invest knowing that their funds are protected and safe and can be returned to their nominated financial facility on a monthly basis.