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
- Real ReturnYour investment gain after subtracting inflation, showing the true growth in what your money can buy.
- Nominal ReturnYour investment gain before accounting for inflation, stated as the raw percentage your money grew.
- Index InvestingA strategy of buying funds that track a whole market index rather than trying to pick individual winners.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
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Plain-English education — not personalized legal, tax, or investment advice.