Actual returns

Definition

Actual returns refer to the amount of money earned or lost from an investment after accounting for factors such as fees, taxes, and inflation. It represents the true profit or loss realized from an investment.

Analogy

Imagine you buy concert tickets online, but after adding all the additional fees and taxes, you realize that your actual cost is higher than what was initially shown. Actual returns work similarly - they consider all additional costs associated with an investment to give you a more accurate picture of your profit or loss.

Related terms

Expected Returns: Expected returns are the anticipated profits or losses from an investment based on past performance and future projections.

Capital Gains: Capital gains represent profits made by selling assets such as stocks, bonds, or real estate at a higher price than what was originally paid.

Dividends: Dividends are payments made by corporations to their shareholders out of their profits. They represent a portion of company earnings distributed to investors.