total return
Total return is a measure of how much an investment earns over a specific period, combining income and appreciation. It includes both interest or dividends received and the increase in the investment's value. For example, if you invest in stocks, total return accounts for the dividends you earn as well as any rise in the stock price. It helps investors gauge the overall performance of their investments, taking into account all the ways it can generate money. Essentially, total return provides a comprehensive view of what an investment is truly yielding.
Additional Insights
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Total return refers to the complete return on an investment over a specific period, including both income generated (like interest or dividends) and any increase in the investment's value (capital gains). For example, if you buy stocks that pay dividends and also appreciate in price, the total return combines these two aspects. It provides a comprehensive view of how much money an investment has actually earned, helping investors compare different opportunities more effectively to make informed decisions.