Langetermijnopbrengst

Langetermijnopbrengst, also known as long-term return, refers to the total return on an investment over a period of time that is typically longer than one year. This metric is crucial for investors who are looking to evaluate the performance of their investments over the long haul, rather than focusing on short-term fluctuations. Long-term return is often used to assess the sustainability and growth potential of an investment, taking into account factors such as capital appreciation, dividends, and reinvested earnings.

Calculating long-term return involves determining the total return on an investment over a specified period, such as five, ten, or twenty years. This is done by comparing the initial investment amount to the final value of the investment at the end of the period. The formula for calculating long-term return is:

Long-term return = [(Final value of investment - Initial investment) / Initial investment] * 100

For example, if an investor initially invests €10,000 and the investment grows to €20,000 over a ten-year period, the long-term return would be:

Long-term return = [(€20,000 - €10,000) / €10,000] * 100 = 100%

Long-term return is particularly important for investors who are focused on wealth accumulation and long-term financial goals, such as retirement planning. It helps investors understand the overall performance of their investments and make informed decisions about their financial future. However, it is essential to note that long-term return does not account for the risk associated with an investment, and investors should consider both return and risk when evaluating potential investments.