What is a 'Nominal Rate Of Return'
A nominal rate of return is the amount of money generated by an investment before expenses such as taxes, investment fees and inflation are factored in. For example, detailed data on a mutual might show a fund's nominal rate of return as 10%, but also show its return after taxes on distributions and sale of fund shares is only 7%. Investors should look beyond an investment's nominal rate of return to get a true idea of what their investment will earn.
BREAKING DOWN 'Nominal Rate Of Return'
Municipal bonds, for example, generally have a lower nominal rate of return than corporate bonds, but the nominal return and the aftertax return of Munis is usually identical since Munis are usually tax exempt, whereas income earned from corporate bonds will be subject to taxation. Corporate bonds are also subject to tax on capital gains when they are sold, giving them an actual rate of return that may be significantly lower than their nominal rate of return.

AfterTax Real Rate Of Return
The actual financial benefit of an investment after accounting ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Nominal Quotation
A quote generated by a futures exchange or broker for contracts ... 
InflationProtected Security  ...
A type of fixedincome investment that guarantees a real rate ... 
Real Interest Rate
An interest rate that has been adjusted to remove the effects ... 
AfterTax Return
The return on an investment including all income received and ...

Investing
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Investing
What is a Nominal Value?
The nominal value of a security, such as a stock or bond, remains fixed for the duration of its life. 
Markets
What's a Real Rate of Return?
A real rate of return is an annual percentage investment return thatâ€™s adjusted for inflation, taxes or other factors. 
Managing Wealth
20 Investments: Municipal Bonds
What Is It? Municipal bonds, or "munis" for short, are debt securities issued by a state, municipality or county to finance its capital expenditures. Such expenditures might include the construction ... 
ETFs & Mutual Funds
TaxFree Income Funds You Should Shortlist (FKTFX, VLTCX)
Looking for holdings for the fixedincome portion of your investment portfolio? These top taxfree income funds may fit the bill. 
ETFs & Mutual Funds
Higher Taxes? No Sweat With Munis
Municipal bonds are a great way to shield your portfolio from a growing tax burden. 
Markets
How Interest Rates Can Go Negative
Central banks from Europe to Japan have implemented a negative interest rate policy (NIRP) in order to stimulate economic growth. 
ETFs & Mutual Funds
How Mutual Funds Are Taxed in the U.S.
A look at how mutual funds are taxed and how investors can be more tax efficient. 
Markets
The International Fisher Effect: An Introduction
The Fisher models have the ability to illustrate the expected relationship between interest rates, inflation and exchange rates. 
Managing Wealth
A Look at the Pros and Cons of Muni Bonds
Considering muni bonds? Here's a look at their pros and cons.

Under what circumstances is the nominal value out of line with the real value of ...
Learn more about nominal stock values and market values. Explore causes of differences between nominal and real values for ... Read Answer >> 
What is the difference between real and nominal interest rates?
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Is the nominal value of a security ever also the real value?
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How does the Fisher effect illustrate returns on bonds?
Learn how the Fisher effect shows the impact of expected future increases in inflation on the prices of bonds and their interest ... Read Answer >> 
If markets give information on value through price, how can nominal values be out ...
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How can you calculate the difference between nominal value and real value of stock ...
Explore the impact of real value and nominal value on stock trading. Find out how these values are assigned and what causes ... Read Answer >>