ANNUAL BASIS

The return gained by an investment within a year's span. Projections with the phrase "on an annual basis" often used data ,which is not worth a year, to project a year's worth of return. For example, an investment will probably have a 1.5% return within a month. By multiplying the 1.5% return by 12, it will result to an 18% annual basis. The more constrict the data period used to derive an annual return, the lesser accuracy that the projection will most likely to be. The statements pertaining to what an annual investment return on an annual basis are always just an estimate.

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