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

Professional Client

An investor that is able to meet several regulatory criteria.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Bed & ISA

Understand what Bed and ISA is and how it works

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

IPO

When a private company sells shares to the public for the first time. Its stock market debut, basically.

NASDAQ

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

Running yield

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

Total Return