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Difference between Yield and Return?

investment piggybank,yield and return

Do not confuse the two terms.


What an investor has actually earned on an investment during a certain time period in the past.
Total return includes dividends and capital gains that the fund distributes to shareholders. A mutual fund incurs capital gains when it sells some of its portfolio holdings to lock in profits or redeem fund shares.


Yield is Prospective not Retrospective. Yield is the investment income paid by many investments. For example the dividends from shares, or the rents paid on property.

Blue chip shares often give good yield because the dividends tend to be higher.

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