Financial Dictionary.
This is a browseable and searchable reference tool for terminology
relating to UK-based personal finance and financial products.
You can browse alphabetically, or search for a specific term.
Reduction in Yield
Definition: The lowering of investment growth within a fund due to the effect of charges. For example, fund that is projected to grow at a notional rate of 7% per annum may actually grow at a rate of 5.5% once the effect of charges implicit in the fund have been taken into account. Therefore, the Reduction in Yield is 1.5% (7% minus 5.5%).
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