Investor Glossary-annual returnInvestor Glossary-annual returnInvestor Glossary-annual returnInvestor Glossary-annual returnInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Annual Return

The HTML to link to this page
 

The annual return of an investment is the amount gained or lost over a calender year. An annual return is often quoted as a percentage. A gain of $120 on a $1000 investment, for example, can be expressed as an annual return of 12%. Mutual funds often quote an annual return in their advertising literature. For funds, the annual return reported assumes reinvestment of dividends and capital distributions. It also accounts for most fund expenses, including 12b-1 fees. Sales fees, however, are not included. For example, the annual return reported by a back-loaded mutual fund would not include the deferred-sales charge. For bonds and other debt instruments, the annual return quoted at the time of sale is only valid if the bond is held to maturity.



Rate this annual return definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, FTSE, EBITDA, FICO score, 401a, reverse mortgage, liquidity ratio, average price per share, phantom income, cancelled check, 144a, retained earnings, inflation, class C shares, LIBOR, diluted share, Key Rate Duration, APR, command economy, minority interest, option premium, balance sheet, ex-dividend, VIX, stock split, risk management, debt service coverage, implied volatility, real GDP, deferred revenue, 1035 exchange, required rate of return, quality assurance, covered put, stock market close, ex-dividend date, labor relations, annual return, Zero Cost Collar, current ratio, dividends payable, 1031 exchange, limit order, open position, per diem, margin rate, irrevocable trust, deferred tax, wholly-owned subsidiary


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use