R

Glossary · PSX term

Real return.

Real return is your investment return after subtracting inflation.

Definition

It shows whether your money actually grew in purchasing power, which matters in high-inflation economies like Pakistan. A high nominal return can still be a loss in real terms if inflation is higher.

Worked example

A 15% return when inflation is 20% is a negative real return of about 5%.

Related on PSX Clarity

Purchasing power

Consumer Price Index (CPI)

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