Investment returns refer to the profit or loss generated from an investment over a specific period. This can be expressed as a percentage of the initial amount invested, known as the principal. Returns can come from various sources, including capital gains, which occur when the value of an asset increases, and income generated from dividends or interest payments. Different types of investments, such as stocks, bonds, and real estate, can yield varying returns. Generally, higher potential returns are associated with higher risks. Investors often assess their risk tolerance and investment goals to determine the best strategy for achieving desired returns on their investments.