Real rate of return

(redirected from Inflation-Adjusted Returns)

Real rate of return

The percentage return on some investments that has been adjusted for inflation.

Real Rate of Return

The rate of return on an investment after adjusting for inflation. It is calculated simply by taking the gross return and subtracting the inflation rate. For example, if the return on an investment is 7% and the inflation rate is 4%, the real rate of return is 3%.

Real rate of return.

You find the real rate of return on an investment by subtracting the rate of inflation from the nominal, or named, rate of return.

For example, if you have a return of 6% on a bond in a period when inflation is averaging 2%, your real rate of return is 4%. But if inflation were 4%, your real rate of return would be only 2%.

Finding real rate of return is generally a calculation you have to do on your own. It isn't provided in annual reports, prospectuses, or other publications that report investment performance.

References in periodicals archive ?
Real return: The inflation-adjusted returns of an investment.
In today's challenging environment, the Fund seeks to help investors maximize their portfolio over time by lowering its risk profile while also providing the potential for attractive inflation-adjusted returns.
The first of these concerned the UK equity markets and returns to shareholders: the annual inflation-adjusted returns on British pension funds in 2000-09 averaged only 1.
Using these inflation-adjusted returns, we find that there is still substantial evidence of excess return predictability in liquidity-adjusted inflation-indexed bond returns as well as in breakeven inflation returns in both the US and the UK, which we interpret as evidence of a time-varying real interest risk premium and a time-varying inflation risk premium.
Inflation - Interest rates in many economies are significantly undermined by inflation, with deposits in Hong Kong and Singapore having delivered inflation-adjusted returns of -3.
He said going back to 1960, the first 7 months of the third year of a presidential cycle (like 2011) produced inflation-adjusted returns of 20 percent for the 48-month presidential cycles.
Real, inflation-adjusted returns over the period are fairly high in China--between 5 percent and 10 percent--and quite low in Japan--ranging from zero to about 3 percent.
58(th) edition argues that equities remain the most promising option for investors seeking positive, inflation-adjusted returns
5% within a month, offering better inflation-adjusted returns than most emerging markets.
The Hartford Municipal Real Return Fund (HTNAX), sub-advised by Hartford Investment Management, will continue to seek income exempt from federal income tax, and now also will seek real return, or after-tax inflation-adjusted returns.
By catering to resident customers with strong disposable incomes, we offer our investors opportunities to achieve very competitive inflation-adjusted returns," said Gary Carmell, Chief Investment Officer of CWS Capital Partners LLC.
In so doing, we offer our investors opportunities to achieve very competitive inflation-adjusted returns," said Gary Carmell, Chief Investment Officer of CWS Capital Partners LLC.