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

S&P 500

Find out what is the definition of the S&P 500 index.

Clean price

The quoted price of a gilt, which excludes accrued interest

Capital

Learn what financial capital means

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Accounting standards

The rules a company follows when preparing financial statements.

Inflation

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

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

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.

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Total Return