Rate of Return

Rate of return is a measure of the profitability or performance of an investment, expressed as a percentage of the original investment. It indicates the gain or loss made on an investment relative to the initial investment amount but not considering other factors, such as inflation. In India, rate of return is used to assess the performance of various investments such as stocks, mutual funds, and real estate. For instance, if you have invested ₹100, and you receive ₹120, the rate of return is 20%.