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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Costs and Charges

The money you pay when investing.
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Internal Rate of Return (IRR)

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

Learn what a bond is
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Quantitative easing

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

Mutual funds and investment trusts are priced on their net asset value (NAV).
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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Custodian bank

Learn what a custodian bank is.
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Zero-Sum Game

A situation in which one person's gain is another's loss.
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Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
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