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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

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.
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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.
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Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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Stock Market

A place where shares of publicly listed companies are traded.
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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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After-hours trading

Trading outside of a stock exchange's opening hours.
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Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.
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52-week high/low

The highest, or lowest, price a share has traded at in a passing year.
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