Returns & Performance
Total Return
Definition
What is Total Return?
The complete investmentAn asset or commitment of money made with the expectation of future income, growth, or both. result from price changes plus income, assuming distributions are included.
Example in practice
How This Looks in Practice
A fund gains 8% in unit price and pays 3% in distributions, producing an approximate 11% total return before compoundingThe process by which returns earn additional returns over time. effects.
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Related Terms
Returns & Performance
Capital 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.
Returns & PerformanceDistribution
Income or realised gains paid by a fund to its unitholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.