GLOSSARY TERM
Net Return
Net return is the return you keep after costs, fees and taxes have been taken into account.
What does this mean in practice?
An investment may show a good return before costs, but that is not the amount you actually keep. Trading fees, fund costs, taxes and other charges can all reduce the final result. Net return gives a more realistic picture of what your investment truly earned for you.
Example
If your investment grows by 8% in a year, but you pay 1% in fees and lose part of the gain to taxes, your net return is lower than 8%. That lower number is what really matters to you as an investor.
Why it matters
Long-term investing is not only about chasing high returns on paper. It is about how much of that return stays with you over time. Looking at net return helps you compare investments more realistically and reminds you why low costs and tax awareness matter.
Continue your path
Ready for the next step? Follow the Start Here path.
Go to Start Here