News From Press Tipping point: How is a total return index different from a normal index?

Tipping point: How is a total return index different from a normal index?

Source: Business Standard May 12, 2017

How is a total return index different from a normal index? In a normal index, returns are calculated taking into account the change in the capital gain or loss. But the stocks held within an index also pay dividends. If all the dividends paid were to be reinvested, the returns you would get would be higher.

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