Expected return
Risk & psychologyThe return an asset can reasonably be projected to deliver over a long horizon.
Earnings growth plus dividend yield, plus or minus re-rating. Plan at 10–11% for Indian equity.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
The return an asset can reasonably be projected to deliver over a long horizon.
Earnings growth plus dividend yield, plus or minus re-rating. Plan at 10–11% for Indian equity.
The all-in rate you pay on debt, set largely by your credit score.
Any debt costing more than your realistic expected return is the highest-return investment available to you.
Deploying a large sum in tranches on fixed dates rather than all at once.
Six to twelve months on fixed dates gives up a little expected return and buys a much lower chance of a first experience bad enough to end your investing.