Estimated Current Return

DEFINITION of 'Estimated Current Return '

The estimated return for a unit investment trust over the short term. The estimated current return is calculated by taking the estimated annual interest income from the securities of the portfolio and dividing by the maximum public offering price, net of the maximum sales charge for the trust.

This measure is less exact than the estimated long-term return and is more susceptible to interest rate risk during the life of the portfolio.

BREAKING DOWN 'Estimated Current Return '

When looking to invest in a unit investment trust, you will be shown both the estimated long-term return and estimated current return. The estimated current return is where you should look if you are planning to invest for the short term.

RELATED TERMS
  1. Return

    The gain or loss of a security in a particular period. The return ...
  2. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
  3. Consensus Estimate

    A figure based on the combined estimates of the analysts covering ...
  4. Mean Return

    1. In securities analysis, it is the expected value, or mean, ...
  5. Income Trust

    An investment trust that holds income-producing assets and trades ...
  6. Unit Trust - UT

    An unincorporated mutual fund structure that allows funds to ...
Related Articles
  1. Retirement

    Surprising Ways a Trust Could Help Your Family

    Everything you always wanted to know about setting up trusts, in handy glossary form.
  2. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  3. Financial Advisor

    How Trust Funds Can Safeguard Your Children

    Certain types of trust funds can help to protect your assets from bankruptcies and civil actions, and can be established to safeguard your children and designated beneficiaries.
  4. Markets

    What's a Return of Capital?

    A return of capital is an investment return that is not considered income.
  5. Retirement

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  6. Trading

    Valuation Models: Apple’s Stock Analysis With CAPM

    The capital asset pricing model, or the CAPM, estimates the expected return of an asset based on the systematic risk of the asset’s return.
  7. Managing Wealth

    Surprising Uses for Trust Funds

    Here are five common situations where a trust fund makes financial sense.
  8. Investing

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  9. Financial Advisor

    Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.
  10. ETFs & Mutual Funds

    What's a Unit Trust?

    The term, “unit trust,” in the United Kingdom is synonymous with “mutual fund,” the term used in the United States.
RELATED FAQS
  1. What happens if a company's earnings fall short of estimates?

    Understand what it means when a company "misses earnings" and does not live up to consensus estimates, and learn why most ... Read Answer >>
  2. Are life insurance trust proceeds taxable?

    I am due 1/3 of a $1 million irrevocable trust from my mom. I want to close out the trust and wonder what taxes may be involved ... Read Answer >>
  3. What is the difference between revocable and irrevocable intervivos trusts?

    Learn what an inter-vivos trust is, the difference between an irrevocable and a revocable inter-vivos trust, and why it is ... Read Answer >>
  4. How should an accountant correctly record and report a change in an accounting estimate?

    Read about how the FASB treats a change in accounting estimate and what businesses are required to report or disclose when ... Read Answer >>
  5. What's the difference between absolute and relative return?

    Knowing whether a fund manager or broker is doing a good job can be a challenge for some investors. It's difficult to define ... Read Answer >>
  6. How do I calculate my year-to-date (YTD) return on my portfolio?

    Find out how to calculate the year-to-date return of a portfolio, including examples of YTD return calculations with and ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center