Nominal Rate Of Return

Filed Under »
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.

Articles Of Interest

  1.

    Financial Planning: It's About More Than Money

    Determine what you need to do now to make a drastic lifestyle change later.

  2. Introduction To Investment Diversification

    Reducing risk and increasing returns in your portfolio is all about finding the right balance.

  3. Curbing The Effects Of Inflation

    Your investments suffer when general price levels rise. Learn how you can control the damage with IPSs.

  4. Internal Rate Of Return: An Inside Look

    Use this method to choose which project or investment is right for you.

  5. Are You A Disciplined Investor?

    Don't let "financial porn" steer you away from a sensible, long-term approach to investing.

  6. Treasury Inflation Protected Securities

    If you want to protect your portfolio from inflation, all you need are a few TIPS.

  7. USD/JPY retains bid tone post Japan trade data

    FXstreet.com (Barcelona) - The USD/JPY continues to trade on a bid tone after the release of the latest Japanese trade figures, in which the trade deficit for May stood at -993.9 bln yen. The ...

  8. Tellabs Inks Deal with WESCO - Analyst Blog

    Tellabs Inc.signed a deal with WESCO International Inc. to supply Tellabs' Optical LAN solution through its business arm, Communications Supply Corporation.

  9. Las Vegas Sands Kept at Neutral - Analyst Blog

    We maintain our Neutral recommendation on Las Vegas Sands.

  10. Himax Hikes Annual Dividend - Analyst Blog

    Himax recently increased its yearly dividend from 6.3 cents per ADS to 25 cents.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=b8a3bcd66fce9f51d81755248c05fadd