HOW DO YOU INCREASE THE RATE OF RETURN..?

It is commonly known that the higher the return rate, the faster you will achieve your financial goals. Just look at the chart below. A small difference in the rate of return will result in big difference after several years of compound interest effect.

You will get more than double the return just by slightly increase the return rate per annum over 20 years

Return rate doesn’t matter when you are just starting up

Yes. It really doesn’t matter. Why did I say so?
When you just started out, you need to accumulate a sum of money significant enough for making some deals. The deals may be about starting a business, buying a significant amount of shares in really good companies, or investing in a property.
Big returns are reaped in those deals. So when you are just starting out, make sure you learn along the way. Accumulating a useful sum of capital, getting educated about making deals, and spending time finding those deals are more important then the rate of return. Imagine that you only have one thousand ringgit investment capital. It won’t make a difference if the return rate is 5% or 20%.
And you should never believe in something that will give you more than 25% return per annum without needing you to put in effort. Because the world’s most successful and wealthiest investor, Warren Buffett makes only 25% return per annum on average.
This leads to the second important fact about rate of return.

Higher return doesn’t mean higher risk

It is common to hear financial planner telling you that if you want to have a higher rate of return, you must be willing to take higher risk. It is even more common in unit trust investing when a consultant tell you that equity funds is more volatile but you may get higher return in long term. Meanwhile some bond funds or fixed income fund give safe but boring return.
Is that always the case? Not actually. There are people making a lot of money with very high rate of return investing directly in the stock market. Look at any business people, those who are successful make tremendous amount of money investing in their own business. Some of the businesses such as construction and housing development are considered high risk by average people. But to those who repeat their success regularly certainly have a way to reduce the risk. They did it not based solely on luck.
Understand this fact – you can in fact get high return by staying low risk. The key is leveraging and control. You can only find great leverage and high level of control in your investment.