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

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Collective investment scheme

Learn what's a collective investment scheme

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Oligopoly

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

Investment Trust

A company that pools money together from multiple investors and then invests it.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Synthetic ETFs

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

Account balance

The amount of money a user has stored in a financial repository.

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Total Return