Net Investment Income


DEFINITION of 'Net Investment Income'

Income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans and other investments (less related expenses). The individual tax rate on net investment income depends on whether it is interest income, dividend income or capital gains.

BREAKING DOWN 'Net Investment Income'

For investment companies, this is the amount of income left after operating expenses are subtracted from total investment income, and it is typically expressed on a per share basis. To find the net investment income per share of a company, divide the net investment income by the shares outstanding. This amount is the amount available to shareholders in the form of dividends.

  1. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  4. Investment

    An asset or item that is purchased with the hope that it will ...
  5. Commission

    A service charge assessed by a broker or investment advisor in ...
  6. Income Tax

    A tax that governments impose on financial income generated by ...
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