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
- Nominal ReturnYour investment gain before accounting for inflation, stated as the raw percentage your money grew.
- InflationThe gradual rise in prices over time, which means each dollar buys a little less than it did before.
- Purchasing PowerHow much your money can actually buy, which shrinks when prices rise faster than your income grows.
- Rate of ReturnThe percentage gain or loss on an investment over a period, measuring how well your money performed.
- Index InvestingA strategy of buying funds that track a whole market index rather than trying to pick individual winners.
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Plain-English education — not personalized legal, tax, or investment advice.