Portfolio Return


DEFINITION of 'Portfolio Return'

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.

  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Internal Rate Of Return - IRR

    A metric used in capital budgeting measuring the profitability ...
  3. Inefficient Portfolio

    An inefficient portfolio is an investment portfolio that delivers ...
  4. Money-Weighted Rate Of Return

    A measure of the rate of return for an asset or portfolio of ...
  5. Asset Management

    1. The management of a client's investments by a financial services ...
  6. Time-Weighted Rate of Return

    A measure of the compound rate of growth in a portfolio. Because ...
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