Investment Fundamentals
Nominal Return
Definition
What is Nominal Return?
InvestmentAn asset or commitment of money made with the expectation of future income, growth, or both. return measured without removing the effect of inflationA sustained increase in the general price level, reducing the purchasing power of money..
Example in practice
How This Looks in Practice
A fixed deposit that grows by 12% reports a 12% nominal return.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.