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Annualized Gain

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Annualized gain
If stock X appreciates 1.5% in one month, the annualized gain for that stock over a twelve month period is 121.5% = 18%. Compounded over the 12 month period, the gain is (1.015)^12 -1 = 19.6%.

Annualized Gain
A gain on an investment expressed in yearly terms, even though the variable does not directly apply to a year. That is, an annualized gain has been mathematically converted to yearly terms. For example, if the return rate on an investment is 2% after one month, one computes the annualized return by multiplying by 12, resulting in a 24% return rate. An annualized variable is often theoretical; there is no guarantee that the return rate in the example above will be 24% if it is calculated after only a month or two.


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Financial-services funds, less spectacular, have still produced the likes of Fidelity Select Brokerage & Investment Management, with a five-year annualized gain of 18.
The 19 percent annualized gain was the steepest since 20.
3 percent annualized gain, it finished ahead of just four of those rivals.
 
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