total return

Total Return

When measuring performance, the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

Notes:

Total return accounts for two categories of return: income and capital appreciation. Income includes interest paid by fixed-income investments, distributions or dividends. Capital appreciation represents the change in the market price of an asset.

See also: Absolute Return, Capital Gain, Dividend, Expected Return, Fixed-Income Security, Return, Return on Assets, Return on Equity, Return on Investment

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Total return

In performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest, interest on coupon interest, and any capital gain/loss) over some investment horizon.

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total return

The sum of dividend or interest income and any capital gain. Total return is generally considered a better measure of an investment's return than dividends or interest alone.