Annual Return

Annual return, meaning yearly gain, is usually used in the context of an investment. It is depicted as an annual percentage. You can get these returns in the form of capital appreciation, returns on capital, or dividends. A positive annual return indicates that the investment has yielded profits, whereas a negative return suggests losses.

Consider this annual return example: Say you invested ₹10,000 in mutual funds at the start of the year. In the next 12 months, your investment will increase to ₹15,000. So, the annual return on your mutual fund investment is 50%.