A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.
The return on investment formula:
Return On Investment (ROI) = (Gain from investment - Cost of Investment) / (Cost of Investment)
In the above formula, "Gain from Investment” refers to the proceeds obtained from the sale of the investment of interest. Because ROI is measured as a percentage, it can be easily compared with returns from other investments, allowing one to measure a variety of types of investments against one another.
Based on the price of investment at $1,000.00, the immediate recurrent investment return is 6% or 1.5% per year (Conditions apply).
At every 1st Jan, 1st Mar, 1st May, 1st Jul, 1st Sep & 1st Nov, investment return of $10.00 would be credited directly into the investor's designated local bank account. If the investment is not made 2 calendar months prior to the pay-out, the payment would be pro-rata.
If a full year investment is maintained, the total pay-out would be $10.00 x 6 = $60.00. ROI = $60.00/$1,000.00 x 100% = 6%.
If the ward bed is not rented out during the preceding period, the total pay-out is reduced to $2.50 per 2-month period. If the ward bed is not rented out continuously for one calendar year and a full year investment is maintained, the total pay-out would be $2.50 x 6 = $15.00. ROI = $15.00/$1,000.00 x 100% = 1.5%.
The principal value is maintained at all times. The principal value can be retrieved via the investment divest policy.
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