Investment performance is the return on an investment portfolio. The investment portfolio can contain a single asset or multiple assets. The investment performance is measured over a specific period of time and in a specific currency. Investors often distinguish different types of return.

These include:

• Interest. Investments like savings accounts, GICs and bonds pay interest.
• Dividends. Some stocks pay dividends, which give investors a share.
• Capital gains. As an investor, if you sell an investment like a stock or bond.

Interest

Investments like savings accounts, GICs and bonds pay interest. With these types of investments, you know exactly how much money you’re going to earn on your investment.

Dividends

Some stocks pay dividends, which give investors a share of what the company makes. You get a regular income from these investments. The amount of the dividend depends on how well the company did that year and what type of stock you own.

Capital Gains

As an investor, if you sell an investment like a stock, bond, mutual fund or ETF, for more than you paid for it, you’ll have a capital gain. If you sell it for less than you paid for it, you’ll have a capital loss.

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