Comprehensive Table of Returns and Risks of Different Asset Classes
As an investor, you've probably been interested in comparing the risk and return of different asset classes. You probably would like to see a table containing information about the risks and prospects of each class. After all, there is a lot of statistical data, but usually they are scattered across different reports from different research companies, and it is difficult to collect the information together.
The good news is that such a table exists. It was created by analysts from the DarWin Enterprise team. Based on their investment experience, DarWin has collected and structured the data in a table, which you can see below.
This data will allow you to compare different types of assets and optimize your investment strategy based on DarWin's experience.
Conclusions from the table:
Deposits and bonds are considered the least risky of all the assets presented. The risk ranges from 0% to 3, and the annual income ranges from 1% to 3%, depending on the conditions of the specific deposit. For example, a deposit in a Swiss bank is obviously more reliable than in a Russian one, but its rates will also be lower.
The stock market brings 8-25% per annum, depending on portfolio management efficiency. At the same time, the risk of assets is 5-17%, and the risk of loss of profit is 8-26%. The stock market is generally considered a stable and popular investment destination.
Direct investments in business or Forex are more risky. In this case, the investor can receive up to 23-57% per annum with a risk of 17-23%.
Contrary to stereotypes, cryptocurrencies are neither the riskiest nor the highest-yielding asset class. The risk of losing an asset is estimated at 37-68%, and the potential annual return is 54-230%. In the past, both the risks and the upside potential were higher. Today, cryptocurrencies have become a much more stable asset (although still considered high-risk-high-profit).
And the riskiest types of investments presented in the table are venture projects and startups. The risk of losing an investment often exceeds 50%, but the profitability can reach up to 1200% per annum.
Of course, there will be no clear conclusion about which asset is better. It's always about balance. Each investor can assemble his own portfolio based on his risk tolerance.
For example, a conservative portfolio might look like this:
25% in deposits and bonds, 25% in real estate and raw materials, 40% in stocks, and 10% in other assets.
And the more risky one is:
50% in stocks, 25% in cryptocurrency and venture funds, 15% in cryptocurrencies, and 10% in other assets.
Or you can entrust management to professional investors.
Effective asset management is not just a bull game, but also a strategic approach that takes into account market volatility and possible risks.
About DarWin Enterprise
DarWin Enterprise is an investment club. DarWin strives to create a community of people interested in investing and technology. The founder and CEO of the company is Alexander Popp.
website: darwin.gold