• The gross rate of return reflects the return on investment before expenses or any deductions.

  • Net rate of return is the return on investment after deducting costs such as taxes, inflation and other fees.
  • The net rate of return is often more difficult to calculate accurately than the gross rate of return, so the fund’s expense ratio is often taken into account when weighing the value of the fund’s income.
  • Global investment performance standards allow investors to compare performance characteristics of different funds.