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

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Limit order

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

Beta

Learn what Beta stands for in finance.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Spot Rate

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

Bond

Learn what a bond is

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Total Return