When looking at the stock market Profit , it is unlike bank interest rate or CPF interest rate as there it is a capital actual Stock investment.In Singapore stock we look at total returns which it accounts for both capital gain and dividend received.
Stock returns = capital + dividend
Actually, Capital gain refers to the positive movement of the share price. Since it is a price movement it can be positive and negative. Whereas for dividend it will always be positive as there is no downside on the dividend. SGX Stocks may cut dividend but it can never demand the dividend that it pays out.
STI ETF is used as a benchmark for Singapore stock market performance, it consists of Singapore 30 largest market capitalization stocks. It's 10 years historical average is 5%.
As for stocks there is no limit on how much you can make. But there is a limit on how much you would lose, that is your investment capital. Stock prices can drop to zero and your capital value can become zero, and you will not lose more than your capital.
Share Investing strategy or Share Market Tips like value investing can achieve an annualized returns of around 10-15%. Any higher is considered extraordinary when it comes to returns you need to look at least 5 years period and on a portfolio total returns basis, not individual stock.
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