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

IPO

When a private company sells shares to the public for the first time. Its stock market debut, basically.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Lock-up period

The period after an IPO when insiders have to sit on their hands and can’t sell their shares.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Accounting standards

The rules a company follows when preparing financial statements.

Margin call

Learn what a margin call stands for in financial terms.

Custodian bank

Learn what a custodian bank is.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Total Return