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.
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RELATED FAQS

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 >> 
How can I calculate the tracking error of an ETF or indexed mutual fund?
Calculate the tracking error of an indexed exchangetrade fund (ETF) or mutual fund by doing a standard deviation percentage ... Read Full Answer >> 
How do you calculate the excess return of an ETF or indexed mutual fund?
For exchangetraded funds (ETFs), the excess return should be equal to the riskadjusted (or beta) measure that exceeds the ... Read Full Answer >> 
What mutual funds can be used for investing in the industrial sector?
The industrial goods sector provides investors access to companies that engage in activities such as aerospace and defense, ... Read Full Answer >>
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