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What are the two sources of investment returns?

What are the two sources of investment returns?

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Answer #1

the two sources of investment returns are :

1. Interest or dividend

2. Capital Gain/ loss

Interest - Investments like savings accounts, GICs and bonds pay interest. With these types of investments, you know exactly how much money you’re going to earn on your investment

dividend : Some stocks pay dividends, which give investors a share of what the company makes. You get a regular income from these investments. The amount of the dividend depends on how well the company did that year and what type of stock you own.

Capital gains/loss are the profits/loss earned when an investment is sold for more/less than its purchase price.

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