What is yield?

📘 In a Nutshell Return is the percentage profit or loss you achieve in relation to your invested capital. It consists of two components: ongoing income such as interest or dividends and changes in the investment’s price. For example, if you buy a share for 100 euros and sell it for 110 euros after one year, your return is 10 percent. Return allows you to objectively compare different types of investments, such as stocks, bonds, or real estate. It is important to understand: a higher expected return is almost always associated with higher risk. For private investors, the net return after deducting costs and taxes is crucial, as only this reflects your actual asset growth. 🔍 Why This Matters The question of return is central for private investors because it represents the measurable success metric of any investment and directly influences asset development. Without a clear understanding of return, investors cannot separate the actual performance of their investments from inflation, costs, or risks. Furthermore, return serves as a benchmark to objectively evaluate different asset classe …