Definitions for "Average Annual Return"
The average yearly profit (or loss) from an investment calculated over a period of years. Often confused with "compound annual return. (Please see compound annual return.)
The expected annual return on an investment, including interest and dividends, expressed as a percentage.
Average Annual Return is used to compare returns over different periods on a consistent basis with the unit being years, hence per annum. Normally only returns over periods greater than one year are annualised. The average annual return is the rate that an investor would have earned in each year to achieve the total cumulative return over the period.
the percentage change in a mutual fund's net asset value, factoring in distributions (income, dividend, and capital gains payments).