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

Interest Rate

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

Zero coupon bonds

What is a zero coupon bond?

Volatility

A measure of how much the prices of an asset or index vary over time.

Margin call

Learn what a margin call stands for in financial terms.

Lock-up period

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

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Dividends

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

Total Return