Returns & Performance
Absolute Return
Definition
What is Absolute Return?
An investmentAn asset or commitment of money made with the expectation of future income, growth, or both.'s gain or loss without comparison with a benchmarkA reference index or rate used to evaluate a fund's performance..
Example in practice
How This Looks in Practice
The portfolioThe complete collection of investments owned by an investor or managed under one mandate. earns an absolute return of 8%.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceCapital Gain
The profit made when an asset or fund unit is sold for more than its cost.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.