Investment Return

Business, Legal & Accounting Glossary

Definition: Investment Return

Full Definition of Investment Return

Investment return is the change in value of the investment over a given period of time and is normally expressed as a per cent. For example, “the stock in IBM had an investment return of 5% for the year”. Investment return is measured in many different ways for different purposes. After-tax investment return is a way to compare the returns on stocks and tax-free bonds directly. Risk-adjusted investment return measures or compares investment return performance under different market conditions. Investment return is often expressed as an annual measure, but be careful you are not looking at a five-year investment return quote or a monthly investment return when comparing different investments. Investment return for the same time period lets investors compare the results of investing in a stock or bond with the results for a fund or a real estate deal. Nominal and real investment returns are the non-adjusted and inflation-adjusted comparisons. Because objectives of lending or investing are an accumulation of wealth, which itself depends on investment return, risk assumed, the amount spent, and length of investment period all play a role in determining investment return. A number of online investment return calculators are available to investors who want to forecast or plan suitable investment return.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Investment Return. Payroll & Accounting Heaven Ltd. September 23, 2021
Chicago Manual of Style (CMS):
Investment Return. Payroll & Accounting Heaven Ltd. (accessed: September 23, 2021).
American Psychological Association (APA):
Investment Return. Retrieved September 23, 2021, from website:

Definition Sources

Definitions for Investment Return are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020 | 2 Views.