General
Real Return
The return on an investment after adjusting for inflation.
What it means in practice
Compare products on post-tax real return, not headline rate. Two instruments with the same nominal yield can differ sharply once slab-rate tax and inflation are applied.
Related terms
Inflation
The rate at which the general price level of goods and services rises.
CAGR
Compound Annual Growth Rate represents the mean annual growth rate of an investment over a specified period longer than one year.
Long-Term Capital Gains
Gains on assets held beyond the holding period that qualifies them as long-term.