Glossary

Nominal return

The money you make on your investment without taking into account inflation. Your real return on an investment is where allowance is made for inflation. For example if your investment has achieved a nominal return of 10% and inflation was 2% then your real rate of return is 10% less 2% giving a return of 8%.

Glossary: investment
Glossary: inflation
Glossary: nominal return
Glossary: rate of return

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Here you'll find explanations of the many financial terms used throughout the Sorted website.