Portfolio Return

What is 'Portfolio Return'

Portfolio return is the monetary return experienced by a holder of a portfolio. Portfolio returns can be calculated on a daily or long-term basis to serve as a method of assessing a particular investment strategy. Dividends and capital appreciation are the main components of portfolio returns.

BREAKING DOWN 'Portfolio Return'

Portfolio returns can be calculated through various methodologies such as a time-weighted and money-weighted returns. However, the overall return must be compared to the required benchmarks and risk of the portfolio as well.

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RELATED FAQS
  1. How do I calculate my portfolio's investment returns and performance?

    Learn the basic principles underlying the data and calculations used to perform personal rates of return on investment portfolios. Read Answer >>
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    My financial planner says my equity portfolio is up year to date after the fee (1.5%) 5 months into the year. Bonds are up ... Read Answer >>
  3. How can I calculate the expected return of my portfolio?

    Understand the components of the equation used to calculate the expected return of an investor's portfolio. Learn why the ... Read Answer >>
  4. How do I calculate my year-to-date (YTD) return on my portfolio?

    Find out how to calculate the year-to-date return of a portfolio, including examples of YTD return calculations with and ... Read Answer >>
  5. Why is risk return tradeoff important in designing a portfolio?

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