A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- CAGR (Compound Annual Growth Rate)The steady yearly rate at which an investment would have grown to its final value over a period.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
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Plain-English education — not personalized legal, tax, or investment advice.