investment 2025-01-14
Comparing Investment Returns Across Asset Classes
Compare historical returns of stocks, bonds, real estate, and crypto.
Understanding historical returns helps make informed investment decisions.
Average Annual Returns (Historical)
| Asset Class | 10-Year Avg | Risk Level | |-------------|-------------|------------| | S&P 500 | 10-12% | Medium | | Bonds | 3-5% | Low | | Real Estate | 8-10% | Medium | | Crypto | Highly Variable | Very High |
Risk vs Return
Higher potential returns = Higher risk
Diversification Benefits
Don't put all eggs in one basket:
- Reduce overall portfolio risk
- Smooth out returns over time
- Capture gains from multiple sources
Key Metrics to Compare
1. CAGR: Compound Annual Growth Rate 2. Sharpe Ratio: Risk-adjusted returns 3. Max Drawdown: Largest peak-to-trough decline
Use our Investment Calculator to compare scenarios.