What are Real Returns? Investing Explained - News Summed Up

What are Real Returns? Investing Explained


To calculate the real return from a savings account, say, you would subtract the current rate of inflation from the 'nominal' or advertised rate. Ups and downs: To calculate the real return from a savings account, say, you would subtract the current rate of inflation from the 'nominal' or advertised rateDo shares provide a real return? Between 2008-2018, shares gave a real return of 5.8 per cent, against minus 2.5 per cent for cash, according to figures from broker AJ Bell. But, in the previous decade, the real return from cash was 2.4 per cent while that from shares was minus 1.5 per cent. As a result, it is too early to say whether the index will provide a positive real return.


Source: Daily Mail April 16, 2022 14:09 UTC



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