Yield

What is Yield?

Yield is a concept associated with investments that refer to the return generated on an asset, such as stocks or bonds. It measures the amount of income generated relative to its purchase price by expressing it as a percentage.

Example of Yield

For example, if an investor purchases a bond for INR 1,000 and receives INR 50 in interest during the first year, then their yield would be 5%. Yields can also apply to other types of investments and assets such as real estate or cryptocurrency. Measuring yield can help investors understand how much they are receiving back compared to their initial investment and helps inform their decision-making when investing.