Investment Fundamentals

Nominal Return

Definition

What is Nominal Return?

Investment return measured without removing the effect of inflation.

Example in practice

A fixed deposit that grows by 12% reports a 12% nominal return.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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