What is Equity Shares Return?
Equity shares return refers to the total gain or loss on your investment in stocks, including both capital appreciation (increase in stock price) and dividend income. It's expressed as a percentage of your initial investment.
How is ROI calculated for equity shares?
ROI (Return on Investment) for equity shares is calculated as: [(Current Value + Dividends Received - Initial Investment - Fees) / Initial Investment] × 100. This gives you the percentage return on your investment.
What is the difference between capital gains and dividend income?
Capital gains are profits from selling shares at a higher price than purchased, while dividend income is the portion of company profits distributed to shareholders. Capital gains are realized when you sell, while dividends are received periodically while holding shares.
How does the Equity Shares Return Calculator account for fees?
The calculator includes brokerage fees and other transaction costs in the total investment cost. These fees reduce your net profit and are factored into the ROI calculation to give you a more accurate picture of your investment performance.
What is annualized return and why is it important?
Annualized return is the geometric average amount of money earned by an investment each year over a given time period. It's important because it allows you to compare investments with different holding periods on an equal basis.
How often should I calculate my equity returns?
It's good practice to calculate your equity returns periodically, especially after significant price movements or dividend payments. Regular monitoring helps you make informed decisions about holding, buying, or selling your investments.