facebookHow regular do investment platforms/companies pay out the returns to their investors? Is it on a monthly basis? Yearly basis? Or something else? - Seedly

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Anonymous

09 Sep 2023

General Investing

How regular do investment platforms/companies pay out the returns to their investors? Is it on a monthly basis? Yearly basis? Or something else?

Eg. When we save our money in local banks, we will get that tiny percentage of interest rate on a annual basis (aka per annum) for the money that we put in our bank accounts. What about investments? How regular do the investors get their returns from the respective platforms/companies that they have invested their capital with?

Discussion (11)

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I think it is case by case basis. Some companies give quarterly, bi-yearly, yearly dividends. It really depends on what you invested in.

Ngooi Zhi Cheng

Edited 15 Sep 2023

Student Ambassador 2020/21 at Seedly

Investment platforms and companies typically offer various investment products with varying payout frequencies. It primarily depends on the type of investment you choose:

  1. Stocks and Dividends: If you invest in individual stocks, your returns come in the form of capital gains when you sell the stock and any dividends paid by the company. Dividends are usually distributed on a quarterly basis.
  2. Bonds: Bonds pay periodic interest, which can vary from monthly to annually, depending on the bond's terms.
  3. Mutual Funds and Exchange-Traded Funds (ETFs): These investment vehicles can pay out dividends or capital gains periodically, often on a quarterly basis. However, the frequency can differ between funds.
  4. Real Estate: If you invest in real estate, rental income can provide monthly returns. Additionally, you can earn profits from property sales.
  5. Fixed Deposits: Much like bank savings accounts, fixed deposits provide returns on a yearly or sometimes monthly basis.
  6. Robo-Advisors: Many robo-advisors invest in diversified portfolios of stocks and bonds. Returns from robo-advisors can vary but are often reinvested, and you can sell your investments to realize gains at any time.
  7. Peer-to-Peer Lending: Returns from peer-to-peer lending platforms may come monthly as borrowers make repayments.
  8. Cryptocurrencies: Cryptocurrencies can be highly volatile. Returns from crypto investments depend on market fluctuations and can be realized at any time.

It's crucial to understand the payout frequency of your chosen investment and align it with your financial goals. Some investments offer more frequent returns, while others prioritize long-term growth with less frequent payouts. Diversifying your investments across different asset classes can help balance your income stream and risk. Always consult with a financial advisor to tailor your investment strategy to your specific needs and objectives.

I am currently a Financial Advisor as well, so feel free to reach out to me on IG (@ngooooied) if you have any further questions!

Javier Tan Yan Kai

13 Sep 2023

Actuarial Analyst at AIA

Ranges from monthly to annual

Usually it will be stated on how it's being paid and no it should be transparently mentioned or recorded

This depends on what you invest in.

T bills do not payout until the end of the term.

SSB pa...

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