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FINANCIAL TERMS

Return

Description

Return means the money an investor gains or loses from an investment. In simple terms, return shows how much money you made or lost compared with what you invested. Return is important because investors use it to measure whether an investment was successful. A return can come from a rising price, dividends, interest payments, or other income. For example, if you invest $1,000 and it grows to $1,100, your return is $100, or 10%. Return is not the same as risk. Return shows the result of an investment, while risk shows the uncertainty or chance of losing money.