There are several ways in which portfolio returns can be conveyed. To understand what "returns" they are getting, it is important for investors to understand the differences between the various methods of measuring returns and the significance of what they represent.
No matter what investors do with their money, there are risks involved that could derail financial goals. If they invest, they could suffer losses. If they don't, inflation can erode the value of their savings. For investors to reach their goals, all of these risks need to be anticipated and managed through a solid financial plan.