Total Return

Total return captures the complete gain or loss from an investment over a defined period, combining capital appreciation (or depreciation) with all income received—including dividends, interest, and capital gain distributions—reinvested at the prevailing rate. It provides a more accurate measure of investment performance than price return alone. For example, a stock that appreciates 10% in price while paying a 2% dividend delivers a total return of 12%. In Indian mutual fund performance reporting, SEBI mandates the use of CAGR-based total return calculations for schemes with a track record of more than one year, enabling fair comparison across funds.