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.

RELATED TERMS
  1. Money-Weighted Rate Of Return

    A measure of the rate of return for an asset or portfolio of ...
  2. Estimated Long-Term Return

    A unit investment trust's estimated return over the life of the ...
  3. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  4. Mean Return

    1. In securities analysis, it is the expected value, or mean, ...
  5. Trading Effect

    A measure of performance that examines the difference in returns ...
  6. Inefficient Portfolio

    An inefficient portfolio is an investment portfolio that delivers ...
Related Articles
  1. Professionals

    Other Terms

    FINRA/NASAA Series 66: Section 2 Other Terms. This section discusses measures of portfolio return: risk premium, expected return and benchmark portfolios.
  2. Professionals

    The Workings Of Equity Portfolio Management

    Achieve analytical efficiency by applying your evaluation to a key set of stocks.
  3. Investing

    Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.
  4. Professionals

    Measuring Portfolio Returns

    NASAA Series 65: Section 16 Measuring Portfolio Returns. In this section different types of risk measures discussed and some sample questions.
  5. Professionals

    Introduction

    FINRA/NASAA Series 66: Section 2 Measuring Portfolio Returns. This section discusses different return measures: return on investment, holding period, annualized, risk free and total returns.
  6. Investing

    Measure Your Portfolio's Performance

    Learn three ratios that will help you evaluate your investment returns.
  7. Options & Futures

    Financial Concepts: The Optimal Portfolio

    The optimal portfolio concept falls under the modern portfolio theory. The theory assumes (among other things) that investors fanatically try to minimize risk while striving for the highest ...
  8. Professionals

    Portfolio Management Theories

    CFA Level 1 - Portfolio Management Theories. Learn the main theories behind portfolio management. Includes information on risk aversion, Markowitz theory and the efficient frontier.
  9. Investing Basics

    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.
  10. Investing Basics

    More Ways to Evaluate Portfolio Performance

    The Jensen measure is another tool investors use to include risk when measuring portfolio performance.
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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. How do I calculate the percentage gain or loss for my portfolio when all of the stocks ...

    Finding the total percentage gain or loss on a portfolio requires a few simple calculations. First, you should understand ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center