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

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

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.

Margin call

Learn what a margin call stands for in financial terms.

Costs and Charges

The money you pay when investing.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Geometric Mean Return

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

Zero coupon bonds

What is a zero coupon bond?

S&P 500

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

Total Return