PSX Clarity
Sign inStart free
N
Glossary · PSX term

Nominal return.

Nominal return is your investment return before adjusting for inflation.

Definition

It is the headline percentage gain you see, but it overstates real growth when inflation is high. Comparing nominal returns across periods of different inflation can be misleading.

Worked example

Earning 18% in a year sounds strong, but it is the nominal return before inflation is considered.

Related on PSX Clarity

Term
Real return
Term
Inflation
Term
Consumer Price Index (CPI)

More glossary terms

Browse all 199 terms →
Net dividend
A net dividend is the cash you actually receive after withholding tax is taken out.
NCCPL
The NCCPL is the company that clears and settles PSX trades and manages capital gains tax collection.
Net Asset Value (NAV)
NAV is the per-unit value of a fund, based on the value of its holdings minus liabilities.
Net margin
Net margin is the percentage of revenue that becomes final net profit after all costs.