DEFINITION of 'Gross Rate Of Return'
The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter or year. It is often quoted as the rate of return on an investment in advertising flyers and commercials.
INVESTOPEDIA EXPLAINS 'Gross Rate Of Return'
The gross rate of return on an investment can be substantially different than the rate of return that is realized after expenses. For example, the gross return realized on a mutual fund that charges a 5.75% sales charge will be very different than the return realized after the charge has been deducted. Mutual fund companies are therefore required to publish or provide both returns to investors for this reason.

Rate Of Return Regulation
A form of price setting regulation where governments determine ... 
Return On Gross Invested Capital ...
The amount that a company earns on the total investment it has ... 
Internal Rate Of Return  IRR
The discount rate often used in capital budgeting that makes ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Discounted Cash Flow  DCF
A valuation method used to estimate the attractiveness of an ... 
Rate Of Return
The gain or loss on an investment over a specified period, expressed ...

What is the 'Rule of 72'?
The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of ... Read Full Answer >> 
How does the required rate of return affect the price of a stock, in terms of the ...
First, a quick review: the required rate of return is defined as the return, expressed as a percentage, that an investor ... Read Full Answer >> 
Which is a better measure for capital budgeting, IRR or NPV?
In capital budgeting, there are a number of different approaches that can be used to evaluate any given project, and each ... Read Full Answer >> 
Is there a situation in which wash trading is legal?
Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >> 
What action is the SEC likely to take on 12b1 fees?
The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b1 fees are used, or ... Read Full Answer >> 
What is considered a reasonable 12b1 fee?
A reasonable 12b1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>

Fundamental Analysis
The 4 R's Of Investing In Retail
In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business. 
Options & Futures
How Risk Free Is The RiskFree Rate Of Return?
This rate is rarely questioned  unless the economy falls into disarray. 
Retirement
The Hidden Costs Of Investing In Mutual Funds
Find the hidden fees in your portfolio, so that you can increase your rate of return. 
Fundamental Analysis
Calculating Basic Earnings Per Share
Basics earnings per share measures the amount of net income earned per share of outstanding stock. 
Investing Basics
Explaining Assets Under Management
Assets under management is a metric that measures the market value of assets that an investment company manages for investors. 
Investing Basics
What is Accrued Income?
In a mutual fund, accrued income is earnings that have accumulated over the year, but have not yet been paid out to shareholders. 
Investing Basics
Explaining Absolute Return
Absolute return refers to an asset’s total return over a set period of time. It’s usually applied to stocks, mutual funds or hedge funds. 
Professionals
TargetDate vs. Index Funds: Is One Better?
Targetdate and index funds are difficult to compare because they differ in both structure and objective, though investors can compare two specific funds. 
Professionals
Advisors: Start Coaching Clients from the Start
Behavioral coaching is vital to help investors stick to plan during market turbulence. Start coaching early and maintain it through the relationship. 
Mutual Funds & ETFs
5 Disadvantages of Mutual Funds Compared to ETFs
In the mutual funds vs. exchangetraded funds debate, ETFs have some clear advantages.