Net return

The net return shows what REALLY remains of your investment return – after all deductions.

The chain of deductions (Germany):

Gross return: 7% (MSCI World long-term average)

Minus fund costs (TER): −0.2% → 6.8%

Minus taxes: 30% partial exemption, then 26.375% flat-rate withholding tax on 70%.
Effective tax rate: approx. 18.5% on the gain → approx. 5.5%

Minus inflation: −2% → 3.5% real net return

Comparison:

• ETF: 7% gross → approx. 3.5% real net ✅
• Overnight money: 2.5% gross → approx. 0% real net (after tax + inflation) 🤔
• Savings book: 0.1% gross → approx. −2% real net (you LOSE purchasing power!) ❌

Conclusion: even after all deductions, an ETF savings plan is the only form of investment that brings significant REAL (after-inflation) wealth growth in the long term.