The Morningstar Dictionary: Real returns

When looking at returns in the context of what investments will be worth over time, it's essential to consider inflation.

Christian Charest 16 November, 2018 | 6:00PM

 

 

Christian Charest: When we look at investment returns posted by fund companies or on third-party sites like Morningstar, what we're seeing reflects the increase in the investment's price and, in the case of total returns, the effects of income distributions on the investment's value. What those numbers don't tell us, however, is how much purchasing power those returns will provide to their investors.

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Christian Charest

Christian Charest