Section

What is opportunity cost in investing: 4 things to know

By Economic Times - 8 months ago
If there is an alternate use to which money can be put, a decision to ignore it and do what one set out to do, creates an opportunity cost. If I leave money idle in the bank because I worry that the equity markets will crash, I make a choice. The opportunity cost of this choice is the difference between the market return of, say, 8%, and the 3% that my money earns.

Disclaimer : Mymoneytimes implements extreme caution and care in collecting data before publication. Mymoneytimes does not liable for the adequacy, accuracy or completeness of any given information. Hence we are not liable for any kind of direct or indirect loss caused by the use of such information.