Total return
The complete gain or loss on an investment, combining the change in price with any dividends or interest received.
Total return adds together everything an investment produced over a period: the change in its price plus the income it paid. Expressed as a percentage, it divides that amount by what you originally invested.
It is the fairest way to compare investments, because a share with a small price rise and a large dividend can beat a share with a bigger price rise and no dividend.
Example
You buy a share at ₹200, receive ₹10 of dividends, and sell it at ₹220. Total return is (₹20 + ₹10) ÷ ₹200 = 15%.
Learn more in these lessons
- Dividends, capital gains and lossesHow do you make or lose money from shares?
- Percentages, percentage change and percentage pointsHow do you calculate a percentage change?
- Adjusted and unadjusted pricesWhy are the old prices on a chart sometimes different from the prices that traded?
Related terms
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