What is 'Total Return'? | Freetrade Dictionary

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

Securities

Bonds and stocks.

Interest Rate

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

Yield

Income from an investment as a percentage of its current price.

Spot Rate

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

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Clean price

The quoted price of a gilt, which excludes accrued interest

Total Return