Several factors influence investment returns, including:
- Market Conditions: Economic indicators, political stability, and supply-demand dynamics significantly impact returns.
- Inflation: The erosion of purchasing power due to rising prices affects the real value of your investment returns.
- Time Horizon: The length of time you are willing to stay invested can affect the returns you achieve.
- Risk Profile: Your risk tolerance and appetite for risk play a crucial role in determining the potential returns.
- Asset Allocation: The mix of different asset classes within your investment portfolio affects the overall returns.