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

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