What is 'total return'? Definition & meaning

This is the measurement of a fund’s performance in a specific period.

Total return encompasses dividends, capital gains, interest, and distributions realised. It should also deduct any fees and costs associated with holding the fund.

It is expressed as a percentage of the initial investment.

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More terms

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

After-hours trading

Trading outside of a stock exchange's opening hours.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

Total Return