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

Value Investing

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

Base rate

What's the base rate?

Interest Rate

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

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Dividends

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

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Depository

We look at what is a depository and what role they play in keeping markets work.

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Total Return