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

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Fundamentals

The data or information that is likely to impact a company's stock price.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Diversification

An investment strategy in which money is put into a variety assets.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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.

Total Return