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The primary source would be the profits of the company in which the investment has been made.

If the investment is in an investment fund, the return would be the distributable profits of the group of companies that are in the investment portfolio of the fund.

Profits can have various sources e.g. rental income from property, sales of products, provision of services, interest on loans and mortgages, manufacturing trade goods, mining and mineral extraction etc etc.

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15y ago
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6mo ago

The sources of return on investment can vary depending on the type of investment. In general, however, the main sources of return on investment include capital appreciation, dividend or interest payments, and rental income. For example, in stocks, the return comes from the increase in stock price and dividends received. In real estate, it can come from property value appreciation and rental income.

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Q: What are the sources of return on investment?
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