Investors rely on absolute return to define how an asset or portfolio performed over a certain period. Relative return is the difference between the absolute return and the performance of the market.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Yarilet Perez is an experienced multimedia ...

LARRY ZIMPLEMAN: In my 40+ years in this business, I think the biggest thing investors overlook when analyzing fund returns is that they think about the absolute return of their funds without thinking ...