A total return of a fund since its inception is the percentage increase in the value of the investment in the fund from its establishment to the current date. This return takes into account all changes in the value of the fund, including any dividends, interest, and asset appreciation. It provides investors with an overview of the fund's long-term performance and helps them assess how effectively the fund has utilized invested capital over time.
- Financial dictionary
A total return of a fund since its inception
A total return of a fund since its inception
Related terms
| Term | Definition |
|---|---|
| Backtest | Backtesting is the process of evaluating an investment strategy or model using historical data to determine how it would have performed in the past. It allows investors to assess the effectiveness and reliability of a strategy before applying it in real market conditions. While positive backtest results do not guarantee future success, they can help identify weaknesses and optimize investment approach. |
| Bank bonds | Bank bonds are debt securities issued by banks to raise funds from investors. The bondholder lends money to the bank for a fixed period, and in return, receives regular interest payments (coupons). At maturity, the bank repays the bond's nominal value. These bonds can be secured by the bank's assets or issued as unsecured, and they are used to finance banking operations or to increase liquidity. |
| Bear market | A bear market is a period when the prices of financial assets, particularly stocks, decline by 20% or more from their previous highs. This period can last from several months to years and is often accompanied by investor pessimism, economic issues, or a recession. During a bear market, investors typically seek safer investments or reduce their exposure to riskier assets. |
| Benchmark | A benchmark is a reference value against which the performance of an investment or portfolio is compared. It is usually an index that represents a specific market or sector, such as the S&P 500 for U.S. stocks. A benchmark helps investors assess whether their investments are performing better or worse than the market and can serve as a basis for making decisions regarding investment strategies. |
| Blockchain | Blockchain is a decentralized digital database that stores records of transactions in chronological order. Each block contains transaction details, a timestamp, and a link to the previous block, creating a secure and immutable chain. Blockchain technology is the foundation of cryptocurrencies like Bitcoin but is also used in other areas where transparency, security, and immutability of data are needed, such as financial services, supply chains, and healthcare. |