Investing on Robinhood can be a great way to grow your wealth over time, but how do you know what a good return on your investment is?
Many investors look to benchmark their performance against the broader stock market, specifically the S&P 500, which is a commonly used gauge of the overall health of the U.S. stock market.
In 2022, the S&P 500 returned -19.64%.
This means that if you invested in the S&P 500 at the beginning of the year and held onto it through the end of the year, you would have experienced a loss of nearly 20%.
So, if you earned a return of -19.63% or better on Robinhood, you would have outperformed the market.
However, it's important to note that simply beating the market isn't necessarily indicative of a good return. What's considered a good return can vary depending on your investment goals, risk tolerance, and other factors.
Generally speaking, a good return on Robinhood would be one that meets or exceeds your personal financial goals and expectations.
For example, if you're a conservative investor who is primarily interested in steady, low-risk returns, a good return on Robinhood might be one that beats inflation and keeps your money growing at a steady pace.
On the other hand, if you're a more aggressive investor who is comfortable taking on more risk, a good return might be one that outperforms the market by a significant margin.
Ultimately, the definition of a good return on Robinhood is a highly individualized one that depends on a wide range of factors.
That said, benchmarking your performance against the S&P 500 can be a useful starting point for assessing your overall investment performance and determining whether you're on track to meet your financial goals.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.