Sunday, December 26, 2010

Yield

A fund's yield is a measure of net income (i.e. dividends and interest, and other equivalent payments) earned by investors in the fund. It takes the sum of the net distributions to investors in the fund and divides that by the relevant starting price (and may for example calculate the yield over the period of a year). Yield is a useful performance metric for mutual fund investors. Funds may also report the weighted average yield of the securities in their portfolio. Yield also has meaning specific to securities such as dividend yield, and bond yield (and a related bond term 'yield to maturity').

Synonyms: Return, Dividend yield, Income yield, Cash return, Rate of return

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