Investment performance refers to how well an investment has done over a specific period. It is typically measured by the return on investment (ROI), which calculates the profit or loss relative to the initial amount invested. Investors often compare the performance of their investments against benchmarks, such as stock market indices like the S&P 500, to gauge success. Factors influencing investment performance include market conditions, economic trends, and the specific characteristics of the investment itself, such as risk level and liquidity. Regularly reviewing investment performance helps investors make informed decisions about buying, holding, or selling their assets.