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

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Costs and Charges

The money you pay when investing.

Yield to maturity (YTM)

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Limit order

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Money laundering

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

NASDAQ

A US stock exchange specialising in the shares of technology companies.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Investment Return

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

Geometric Mean Return

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

Total Return