Looking for a good place to invest 300 million dollars? If you are, then you are probably looking for a good return on your money. A good return is something that can be very valuable, even if you only 300 $ in your pocket. But do not be discouraged because you can do it that way stretch ratio beyond what you might think.

Here are 3 places where you can grow your money for you:

• Get a high interest savings account. Which implies that the comparison of the accounts, who you the best performance. But make sure you continue to add money to your savings account so that you earn more interest.

• You can place your money in a money market account. It is very possible that a higher return than you would get with your traditional savings account.

• You can invest in shares. You do not need much to make this investment. Try your luck in the short-term money and keep your composition so that your returns larger and larger. » Read more: Invest $300 Dollars – 3 Places to Put Your Money

was on the trail of the stock exchange, by the promise of higher returns than clumsy old bonds and money market accounts, where the exchange will be the destination of choice for retirement savings, and Wall Street responded by increasing added supply of small consumers through investment funds. Before 2000 it was not unusual to hear that the S & P by 16% over the previous 10 years. A look at the statements of one of the most famous indexed mutual funds, the Vanguard 500 returns since its inception in 1976 are 11.75%, impressive until you see the performance of a year -2.41% 5-year yield, 11, 89% and 5.06% back 10 years. These average returns are not actual returns. For example, look at the growth of 1 dollar in the legendary High Fly Fund. High Fly shows a gain of 50% in one year and your dollar goes to $ 1.50. The following year it reported a loss of 25%, your investment now worth $ 1.125. The average yield on high by the mutual company reports Fly is 12.5%, but not the actual performance. Their actual performance or growth rate (CAGR) in the vicinity of 6% per year worse if one takes into account inflation.

6% is acceptable given the risk that investors take by investing in the stock market? David F. Swenson, CIO of the Yale Endowment explains investor risk in his book, Unconventional Success, he says: “Because the shareholders are paid after the companies to meet all the other candidates, is a residual equity As these shareholders hold more risky. position, for example companies, lenders enjoy a superior position in the capital structure of a company. “He continued by saying” the difference of 5.0 percentage points between the stock and bond returns represents the historical risk premium as the return to shareholders for the adoption of the risk above the level inherent in bond investments defined. “Mr. Swenson notes and calculations of the risk premium was set at an average annual return of 10.4% in the stock market in terms of returns to 5% was used. 10.4% -5% corresponds to a risk premium of 5.4%. Unfortunately I have not correspond to calculate the CAGR (compound annual growth rate), which found Mr. Swenson. I found many examples of average returns that match the rate growth of 10.4% on average, but not the TCCA. The reason for this is that all other forms of saving by the TCCA. change your savings accounts, bonds and money market quotes are all from the TCCA or equivalent annual interest yield (APY) quoted as saying. To determine where to provide your funds, you must not compare apples to apples to apples and oranges. As you can guess the stock market CAGR is lower.
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So, as your investments? No, rattle not only a war story about how she raised shares of stock on an immersive and sold it in the next week for a growth of 10%. Do not talk about how you sold stock just before a big dive led. How do you really?

Many people when they step back and really look at the performance of their investments is that their brokers more money than them. You do the craft left and right, feeling like Masters of the Universe, but when the chips are made worse is that the return of a money market account. Sometimes they are even less. The vast majority of people, managers of investment funds mentioned, it would be better to simply include the money in an index fund and forget it.

However, some people have better than index funds. Not just a few, but many. Despite what write some professors from business schools in their newspapers, despite all the studies that most fund managers can not beat index funds show for the returns, there are many people who do not excel, index funds and managed funds.

What is their secret? Do they have the uncanny ability to predict market fluctuations? Do they have contacts, the knowledge which enables them to offer to buy or sell ahead of the crowd? Do they have some sixth sense that they can relate to outperform stocks? Maybe some of these have some advantages, but the vast majority are only invest differently. You avoid making some of the most common mistakes investors. » Read more: 5 Mistakes Most People Make When Investing in the Stock Market