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 longterm basis to serve as a method of assessing a particular investment strategy. Dividends and capital appreciation are the main components of portfolio returns.
Next Up
BREAKING DOWN 'Portfolio Return'
Portfolio returns can be calculated through various methodologies such as a timeweighted and moneyweighted returns. However, the overall return must be compared to the required benchmarks and risk of the portfolio as well.
RELATED TERMS

MoneyWeighted Rate Of Return
A measure of the rate of return for an asset or portfolio of ... 
Estimated LongTerm Return
A unit investment trust's estimated return over the life of the ... 
Modern Portfolio Theory  MPT
A theory on how riskaverse investors can construct portfolios ... 
Abnormal Return
A term used to describe the returns generated by a given security ... 
Portfolio Investment
A holding of an asset in a portfolio. A portfolio investment ... 
Mean Return
1. In securities analysis, it is the expected value, or mean, ...
Related Articles

Managing Wealth
The Workings Of Equity Portfolio Management
Achieve analytical efficiency by applying your evaluation to a key set of stocks. 
Managing Wealth
Calculating The Means
Learn more about the different ways you can calculate your portfolio's average return. 
Managing Wealth
Measure Your Portfolio's Performance
Learn three ratios that will help you evaluate your investment returns. 
Managing Wealth
More Ways to Evaluate Portfolio Performance
The Jensen measure is another tool investors use to include risk when measuring portfolio performance. 
Managing Wealth
3 Steps to Assess Your Portfolio's Annual Performance
Learn about three simple steps you can use to evaluate the annual performance of your investment portfolio, and why rate of return isn't enough. 
Managing Wealth
Achieving Optimal Asset Allocation
Minimizing risk while maximizing return with the right mix of securities is the key to achieving your optimal asset allocation. 
Managing Wealth
Diversify Your Strategies, Not Your Assets
Asset classes are intentionally selflimiting, and their use is incapable of creating true portfolio diversification. 
Managing Wealth
Understanding Portfolio Investment
Portfolio investment involves buying securities with the expectation of earning a return on them. 
Retirement
How To Create An Effective Retirement Income Strategy
We will design a portfolio that should balance the requirements of liberal income with sufficient liquidity to withstand down markets. 
Financial Advisor
What is Portfolio Management?
Portfolio management is the act of maximizing the return on a portfolio. This is done with trading decisions made for the marketable securities in that portfolio. A portfolio manager, or a team ...
RELATED FAQS

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 >> 
How are my total returns calculated?
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 >> 
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 >> 
How do I calculate my yeartodate (YTD) return on my portfolio?
Find out how to calculate the yeartodate return of a portfolio, including examples of YTD return calculations with and ... Read Answer >> 
Why is risk return tradeoff important in designing a portfolio?
Learn how the risk return tradeoff is used in the construction of portfolios, and how modern portfolio theory seeks to diversify ... Read Answer >> 
What is the difference between a sharpe ratio and an information ratio?
Understand the meaning of the Sharpe ratio and the information ratio, and understand how they differ as tools for evaluating ... Read Answer >>