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Yield 

Meaning

Yield is defined as the return or growth generated from an investment,  representing the profit earned relative to the amount invested.


Example :

For instance, if you invest ₹10,000 in a fixed deposit and earn ₹500 in a year,  your yield is calculated as 5%.


How to Understand : 

Yield serves as a metric to evaluate how much your investment has appreciated over a  specific period.


Importance :

1. It is essential for comparing various investment options to identify the most lucrative  opportunities.
2. Yield provides insight into whether your investment is performing satisfactorily.
3.  This metric is useful for planning long-term financial goals, such as saving for higher  education or future purchases.
4.  Understanding yield promotes smart investing decisions, empowering you to select the  best investment strategies.

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