annual returns
Annual returns refer to the percentage gain or loss on an investment over a one-year period. This metric helps investors assess the performance of their investments, such as stocks, bonds, or mutual funds. It is calculated by comparing the ending value of the investment to its beginning value, factoring in any dividends or interest earned.
Investors often use annual returns to compare different investment options or to evaluate the performance of their portfolio. Understanding annual returns can aid in making informed decisions about where to allocate funds, ensuring that investments align with financial goals and risk tolerance.