Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Return of capital definition

Companies sometimes return a portion of capital, or value, to their capital owners. This means an investor like a shareholder will receive back a portion of their original investment.

Return of capital definition

Companies sometimes return a portion of capital, or value, to their capital owners. This means an investor like a shareholder will receive back a portion of their original investment.

The value moves from the company back to the investor. It’s a common practise by mutual funds, master limited partnerships and Real Estate Investment Trusts (REITs). Returns of capital are often treated differently in tax regimes to dividends or other types of income or capital gains payments to shareholders.

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The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

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