Business, Legal & Accounting Glossary
The cumulative total return on an investment is the total profit — including dividends, interest and capital gains — received on an investment over a period of time. The period of time necessary to figure the cumulative total return on an investment can vary. The cumulative total return on an investment is often expressed as a percentage return on the investment. The cumulative total return can be used to express the return on an individual investment, or the cumulative total return can be used to rate and compare mutual funds or other similar investments. The cumulative total return can be an excellent way to compare the performance of various investments, especially when the cumulative total return is compared over several different time periods.
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This glossary post was last updated: 4th February, 2020