Open a brokerage statement and the figure that matters most is the return. It captures how much an investment has gained or lost over a period, expressed as a percentage or an absolute amount. Dividends, interest, and price changes all feed into it.

Returns can be quoted in different ways. A simple return looks at start and end values. Annualized return spreads performance over a year to make comparisons fair. Total return includes reinvested income, which can meaningfully lift long-term results.

Context matters. A 6% gain might look modest in a boom but solid during a downturn. Costs such as fees and taxes chip away at what investors actually keep, so net return is often the more honest figure.

What shapes return

• Price appreciation or decline of the asset
• Income received, such as dividends or coupons
• Holding period and compounding effects
• Fees, taxes, and currency movements