Basis Points
InvestingA unit of measurement equal to 1/100th of a percentage point (0.01%), commonly used for interest rates and fund fees.
Example
Example: Consider an investor building a $100,000 portfolio. Basis Points — a unit of measurement equal to 1/100th of a percentage point (0.01%), commonly used for — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.