compound return meaning
[Finance]
The rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms, meaning that the percentage number that is reported represents the annualized rate at which capital has compounded over time.
The rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms, meaning that the percentage number that is reported represents the annualized rate at which capital has compounded over time.
Examples
More: Next- Small consistent earnings that involve strict money management rules can compound returns over time.
- The fund had at that time averaged over 20 % per year compound returns.
- Siegel and Montgomery demonstrate conclusively that taxes and inflation substantially dampen compound returns especially for equity investors.
- The sooner you start, the bigger boost you'll get from compound returns on your investments.
- It has generated an average annual compound return of about 20 percent for investors over the last quarter-century.
