The essentials2 min read
ReturnGerman: Rendite
Return describes an investment’s gain or loss relative to the capital invested. It is often expressed as a percentage.
In plain language
Total return includes price changes and income such as dividends. Distinguish gross from net returns and nominal from inflation-adjusted returns. Annual returns are not directly comparable to cumulative returns over several years.
Let’s make it concrete
€1,000 becomes €1,060 after one year, including income. The return is 6% before any remaining costs and taxes.
Simplified example for illustration.Worth understanding
Past returns are not a reliable promise of future results. Always compare the same period and calculation method.
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For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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