Learn About Investing
Investment success can be measured by calculating the return (profit) on the investment, both in absolute and relative terms.
The absolute return is the total amount you get back on top of your original investment. Saving a set amount to achieve a personal goal, such as a house deposit or new car, would be an ‘absolute’ target.
The relative return is the return relative to something else – like the rate of inflation. Experienced investors often measure their investments against an appropriate benchmark. Typically, benchmarks are stock indices like the FTSE All-Share Index.
Our research has helped us create a list of the top ten most frequent questions that people who are new to investment ask.