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Expected return on investment |
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Expected return on investmentThe return one can expect to earn on an investment. See: Capital asset pricing model.Expected return on investment Similar MatchesUnit investment trustUnit investment trustMoney invested in a portfolio whose composition is fixed for the life of the fund. Shares in a unit trust are called redeemable trust certificates, and they are sold at a premium to net asset value. Investment Management Regulatory OrganisationInvestment Management Regulatory OrganisationA Self Regulating Organisation (SRO) with responsibility for monitoring the manner in which UK investment firms manage their funds, that is their client's investments. It supervises the way firms treat their clients and provide investment services. Companies include those which manage funds, unit trusts, ISAs and pension funds. IMRO is currently one of the three SROs (the other two being the Personal Investment Authority [PIA] and the Securities and Futures Authority [SFA] ) which report to the Financial Services Authority (FSA). All regulatory functions of IMRO have been taken over by the Financial Services Authority as of December 2001. Investment climateInvestment climateFactors such as economic, monetary, and other conditions that affect the performance of investments. Enterprise Investment SchemeEnterprise Investment SchemeThe Enterprise Investment Scheme is a UK tax incentive scheme designed to encourage investors to invest in unquoted companies. The benefits are:Income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.CGT relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.Tax relief on losses: if your EIS investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.Rollover relief: if you use the proceeds from selling shares in Company A to invest in Company B, and Company B is an EIS-qualifying company, you won't have to pay tax on the gains made from Company A until you subsequently dispose of Company B's shares. i.e. your gain is rolled over.The maximum amount you can invest in an EIS is £150,000 annually. Similar tax breaks are available from investments in Venture Capital Trusts (VCTs). Essentially, these are investment trusts that invest in small unquoted companies. As with EIS investments, there are lots of rules which, if broken, will invalidate the tax advantages.The risks associated with EIS companies are high and you should take professional advice before committing funds to them. Return on investmentReturn on investmentThe overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6% Further Suggestionsinvestment gradeFinite Life Real Estate Investment Trust (FREIT) Capital investment Reinvestment rate protected investment products Net investment income per share Personal Investment Authority Systematic investment plan Investment Risk Investment company Reinvestment effect investment club dividend reinvestment plan Overinvestment Investment letter investment business Registered investment company open ended investment company Investment manager Investment Reinvestment Independent investments Investment agreement Direct investment Investment bank |
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