Currently I have a goal of 8% after tax.....this includes returns from cap gains, divi's, corporate bonds and term deposits.
To achieve this I need good stock selection as I have 25% of my funds in term deposits, risk eversion, and this drags down my average returns.
I may struggle to achieve my goal this year as term deposit rates are falling but I sleep easy with this risk structure.
I think it is interesting to note that Warren Buffet has increased his cash holdings by 30% in the last 12 months , including selling down many of his large holdings, check this chart out.
Warren says not much value out there but his selling says he thinks valuations are stretched
https://companiesmarketcap.com/nzd/berkshire-hathaway/cash-on-hand/
Hi Snapper,
I don't have a target per se.
For what it's worth as some sort of a yardstick for a pure equity portfolio, (not a balanced one with bonds and term deposits like you're running). Infratil state on their website they are aiming for 11-15% returns.
For equities targeting 10% almost certain and 15% expected. Recognising targeted and achieved are not the same so ok with with 10%+ over the long run.
NZX 50 is a useful index to measure your share investments by........ eg use NZX 50 plus (say) 5 to 10% as your goal etc etc.
I use NZX50 plus 20%.
honestly in a world that is now changing and spinning back to the 16th century the old ideas "new ideas of the 20-21th century may no longer apply."
survive ... is the new goal...
I mostly invest in a global index fund - so I'm happy with the market return.
15% for me. At least for when I am fully invested in the market.
Discovery fund target is also 15%.