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Total Return

Total Return

This is the measurement of a fund’s performance in a specific period.

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

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Bond

Learn what a bond is

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

NASDAQ

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

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Inflation

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

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

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