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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use