Nominal Rate Of Return

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Dictionary Says

Definition of 'Nominal Rate Of Return'

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.
Investopedia Says

Investopedia explains '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 after-tax 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.
Search results for

'Nominal Rate Of Return'

  • CFA Level 1 Study Guide - Portfolio Management - Rate of Return ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/rate-of-return-basics.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs ... Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ... 4.3 Nominal vs ...

  • The International Fisher Effect: An Introduction

    http://www.investopedia.com/articles/economics/10/international-fisher-effect.asp
    ... The approximate nominal rate of return = real rate of return plus the
    expected rate of inflation. For example, if the real rate ...

  • Introduction To Inflation-Protected Securities

    http://www.investopedia.com/articles/04/091504.asp
    ... 401K, Bonds, ETFs, Options. Investors usually focus on the nominal rate of return
    on their investments, but the real rate of return is what really matters. ...

  • Why The Consumer Price Index Is Controversial

    http://www.investopedia.com/articles/07/consumerpriceindex.asp
    ... return. The nominal, annual required total return can be approximated as
    the real required return plus the rate of inflation. For ...

  • CFA Level 1 Study Guide - Macroeconomics - Nominal vs. Real GDP ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/nominal-real-gdp-deflator.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs ... Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ... 4.3 Nominal vs ...

  • CFA Level 1 Study Guide - Portfolio Management - Return Objectives ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/return-objectives-investment-constraints.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs ... Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ... 4.3 Nominal vs ...

  • Inflation: Inflation And Investments | Investopedia

    http://www.investopedia.com/university/inflation/inflation4.asp
    ... is 6% (10% - 4% = 6%). As an investor, you must look at your real rate of return.
    Unfortunately, investors often look only at the nominal return and forget ...

  • Series 65 Study Guide - Quantitative Methods of Evaluating ...

    http://www.investopedia.com/exam-guide/series-65/quantitative-methods/rates-of-return-internal-rate-of-return.asp
    ... By adjusting the stated (nominal) return of an investment to take inflation into ...
    8% on an investment and inflation is 3%, the real rate of return would be ...

  • CFA Level 1 Study Guide - Corporate Finance - Net Present Value ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/npv-net-present-value-irr-internal-rate-of-return.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs ... Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ... 4.3 Nominal vs ...

  • CFA Level 1 Study Guide - Corporate Finance - Operating Leverage ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/operating-leverage-effects.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs ... Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ... 4.3 Nominal vs ...

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