GLOSSARY TERM
Total Return
Total return is the full return from an investment, including both price growth and any income it pays, such as dividends or interest.
What does this mean in practice?
An investment does not create value only when its price goes up. It can also generate income along the way. Total return combines both parts into one picture. This gives a more complete view than looking only at price changes. In many cases, especially over long periods, reinvested dividends or interest can make a meaningful difference.
Example
You buy an investment for €1,000. After one year, its price rises to €1,050 and it also pays €30 in dividends. Your total return is €80, or 8%, not just the 5% price increase.
Why it matters
Total return helps you judge investments more accurately. It reminds you that long-term growth often comes from both price appreciation and reinvested income, not just from a rising market price.
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