The key difference is whether the investment has been sold or not.
1. Realised Returns:
- These are actual profits or losses made when you sell a stock.
- Once sold, the gain or loss is locked in and may be subject to taxation.
- Example: If you buy a stock at ₹50 and sell it at ₹70, your realised return is ₹20.
2. Unrealised Returns:
- These are potential profits or losses on stocks you haven’t sold yet.
- These returns change with market fluctuations and become realised only when sold.
- Unrealised gains are not taxed until they become realised.
- Example: If you buy a stock at ₹50 and its price rises to ₹70, but you haven’t sold it, your unrealised return is ₹20.