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Return On Investment In Betting

Return On Investment In Betting

As many savings-accounts, and banking-based investments, are currently offering annual interest rates of around 1% or less, many savers are looking for alternative methods of investment that are paying a substantially better Return On Investment (ROI) – and following a proven horse racing tipster can provide you with just such an ROI.

Make It A Long-term Investment

When investing in the tips of a proven horse racing tipster, it is important to set yourself a long-term goal. Therefore, just like many savings-accounts pay interest on an annual basis, you should ideally give your chosen tipster a year to prove to you that his tips can yield a much better ROI than your savings-account.

How To Work Out Return On Investment

Working out the ROI on betting isn't as difficult as it might sound. Basically, all you have to do is divide the profit you make (your winnings) by the amount you invested (your stakes).

For example, if your tipster instructs you to invest a total of £5,000 over the course of a year, and at the end of the year your betting bank is £6,000 – you have won £1,000. To work out your ROI, all you need to do is divide your £1,000 winnings by your £5,000 stake = 20%. Which, I'm sure you'll agree, is much better than the average savings-account.

ROI Is The Best Way To Judge A Tipster

Punters often ask why ROI is the best way to judge a tipster rather than profit, and this is best explained using hypothetical Tipsters A & B.

"Tipster A" annually invests £5,000 and makes a profit of £1,000.

"Tipster B" annually invests £10,000 and makes a profit of £1,500.

Most inexperienced punters would just see that "Tipster B" has made a bigger profit, and decide to follow him. However, whilst "Tipster A" has shown a 20% ROI, "Tipster B" has only shown a 15% ROI.

So, the question is, what should you do?

The answer: if you're happy investing £10,000 a year – why not simply double your stake on all of "Tipster A's" selections, which will then double your profit to £2,000 – and still at that very healthy ROI of 20%.

Peaks And Troughs

Whilst any good tipster will produce a better ROI than the current Bank Interest Rates, it is worth noting that following a tipster is more comparable to dealing in stocks and shares.

Basically, there is a higher-risk element, and there will be times when your balance (Betting-bank) dips and rises. However, just like in stock and shares, you would never expect to invest your money and make an instant-killing – which is why you should always make a long-term investment in a tipster who annually shows an excellent ROI.

Owen SmithOwen Smith

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