Factors that may reduce gross investment return

Source: Wells Fargo Investment Institute, as of September 30, 2021. For conceptual and illustrative purposes only. The size of the bars do not indicate the exact expected returns on a real or gross basis.

Key Takeaways

  • An investor’s net real return may differ from the market return due to manager fees, taxes, and inflation.
  • Investors in the highest tax brackets may be able to use tax-efficient strategies to improve the net real return that is realized.