The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Absolute return definition

The absolute return, in investing terms, is the return on an investment expressed in monetary or percentage terms. For example, if £10,000 is invested and it grows to £15,000 when it is cashed in, then the absolute return on that investment is £5000, or 50%.

Absolute return definition

The absolute return, in investing terms, is the return on an investment expressed in monetary or percentage terms. For example, if £10,000 is invested and it grows to £15,000 when it is cashed in, then the absolute return on that investment is £5000, or 50%.

Other ways of measuring return include relative return, when the performance of an investment is measured against similar investments, the market as a whole or a fixed benchmark like an index.

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