Yield and Return | srei

Yield and Return

Yield is the amount of income you collect on an investment, expressed as a percentage of your original investment. Return is the amount of money your investment increases in value, plus the money you earn on the investment. Yield and return look similar but they are different. When talking of return, it is what an investor has earned on his investment during a certain period of time during the past. Return generally takes into account interest, capital gain, increase of share price and dividends. Return can be called as retrospective. In contrast to Return, Yield is prospective or advanced looking. Yield measures income like interest and dividends that is earned through an investment ignoring capital gain. In Yield, the income is taken in the perspective of a certain period of time and then annualized, with the supposition that the dividends and interests will continue to be got at the same rate.