Returns & Performance
Relative Return
Definition
What is Relative Return?
Performance compared with a benchmarkA reference index or rate used to evaluate a fund's performance. or another investmentAn asset or commitment of money made with the expectation of future income, growth, or both..
Example in practice
How This Looks in Practice
The fund's 12% return is 3 percentage points above its benchmark.
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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.