Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Real Rate of Return'
The rate of return an investor would receive after inflation, usually the CPI, is deducted from gross performance. For example, a gross return of 10% less 3% for inflation would produce a real return of 7%. Real return is important for long-term investors so they make sure they protect the purchasing power of their money.