What is Absolute Return and how it differs with relative return?
Absolute return which is the return on an investment over a given time period, expressed as a percentage of the initial investment. It reflects the basic, independent results of a portfolio or investment compared to no benchmark or market index at all. Absolute return tells us, “How much has my investment appreciated or depreciated over a period of time?”
In other words, absolute return shows the real dollar or percentage gain/loss suffered by an investor, without any comparison to the performance of other benchmarks, markets or assets.