How to double your investment return every six years

Does the idea of doubling your money sound like a get-rich-quick scam? Well, maybe it’s not quick, but there is a method that will show you how long it should take you to double your money with your investment return. It’s called the rule of 72, and it can be applied to any type of investment. To use the rule of 72, divide the number 72 by an investment’s expected annual return. The result should be roughly the number of years it will take to double your money. For example, if the expected annual return of a fixed income investment is about 2.35% and you have $1,000 to invest, you would divide 72 by 2.35 to get 30.64 — the number of years it would take to double your $1,000 at that rate of return. Of course, the catch is how to know the expected annual investment return. It’s impossible to actually know in advance what will happen to prices, and we know that past performance does not guarantee future returns. But by examining historical data, we can make an educated guess at what they might be. According to the 2018 Ibbotson Stocks, Bonds, Bills, and Inflation Classic Yearbook, the

January 4, 2019 No Comments

Azzad Portfolios Again Achieve ‘Top Guns’ Status from Informa Investment Solutions

Falls Church, Virginia, Nov. 20, 2018 — Azzad Asset Management announced today that three of its investment portfolios have been recognized as PSN Top Guns for time periods ending September 30, 2018. The firm’s small cap growth, small cap value, and REIT (real estate investment trust) strategies received the distinction from Informa Investment Solutions’ PSN manager ranking database. This highly anticipated quarterly ranking is widely used by asset managers and investors. “PSN Top Guns, which ranks products in six categories in over 50 universes, is a go-to resource for institutional asset managers and investors in their decision-making process,” said Ryan Nauman, vice president at Informa Financial Intelligence. “Congratulations to Azzad on being named a PSN Top Gun. This highly respected ranking spotlights the performance of leading investment managers each quarter.” Achieving the Top Guns distinction means that the Azzad strategies are among the top 10 performers within one or more peer groups reporting to Informa, the longest-running investment manager database in North America. About the small cap growth portfolio Azzad’s small cap growth portfolio has been managed by Kayne Anderson Rudnick Investment Management since its inception in August 2013. The investment philosophy focuses on the “high-quality” subset of the small

November 20, 2018 No Comments

How to calculate your rate of return

Measuring your rate of return (ROR) is not always straightforward. There are many types of ROR, and investors are not usually aware of their differences. There are three measures of return that are frequently used: simple rate of return (SRR), internal rate of return (IRR), and time-weighted return (TWR). These measures all calculate performance differently. Simple rate of return SRR is the simplest measure of return, showing simply the percentage change in market value. It is often used to show how a benchmark or index performs over time because there are no cash flows over time that could affect performance. For an individual investor, however, SRR cannot accurately show the return of an individual’s investment portfolio. Internal rate of return IRR shows the performance of an individual’s portfolio between two dates, and it factors in the effect of cash into and out of the portfolio during the period. It is a more meaningful measurement of a portfolio’s growth than SRR. Since cash flows are worked into the calculation, greater weighting is given to time periods when more money is invested in the portfolio. IRR is sometimes referred to as the dollar-weighted return or personal rate of return. It can be

June 26, 2017 No Comments