The so-called principal is the capital invested when we invest. The size of capital directly affects the final income and is one of the key factors affecting the investment income. When managing money, if the principal is too small, don't expect your investment to make a big profit, which is unrealistic; Instead, we should regard investment as a process of accumulating and learning financial management experience, and then make down-to-earth efforts to improve our ability to make money.

Second, the return on investment.

As the name implies, the rate of return is the rate of return in investment, which is obtained by dividing the investment income by the principal invested, and the rate of return ultimately directly affects our investment income. However, the rate of return is not only influenced by objective factors such as normal market environment, industries and policies, but also determined by personal factors such as our investment vision, experience and professional knowledge, because any investment decision is made by ourselves.

For example, in stock market investment, if you only rely on luck, it is difficult to obtain a higher rate of return. Although you sometimes get some objective benefits from the lottery, these benefits are difficult to sustain.

Investment is a long-term thing. If you want to get a considerable return on investment, you need to continue to carry out special research and accumulation. This is the most direct way to improve our return on investment. In other words, the rate of return on investment is ultimately up to you.

Third, investment time.

One of the key factors affecting the return on investment: time.

Annual yield 10%. Without compound interest, the ten-year investment result is 65,438+000%, which is just doubled. If calculated with compound interest, the result is equivalent to 2.9537 times of the original gold.

Therefore, through the comparison of the above examples, we can know that the rate of return is not the most important, but how long it takes to get it. The rate of return in different time periods is also one of the key factors we need to consider in the investment process.

Investment income refers to the income of enterprises or individuals investing abroad (the losses incurred are negative), such as dividend income, bond interest income, profits shared by joint ventures with other units, etc.

It is the net income after deducting investment losses from profits, dividends and bond interest obtained from foreign investment. Strictly speaking, the so-called investment income refers to the monetary income with the project as the boundary.

It includes not only the sales income of the project, but also the value of asset recovery (that is, the fixed assets and working capital recovered at the end of the project life). Investment can be divided into two categories: industrial investment and financial investment. People usually say that financial investment mainly refers to securities investment.