Performance Mutual Fund Calculator

Mutual Fund Return Formula:

\[ Return = \frac{(NAV_{end} - NAV_{start} + Dividends)}{NAV_{start}} \times 100 \]

Return (%):

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1. What is Mutual Fund Performance Return?

The mutual fund performance return measures the total percentage gain or loss on a mutual fund investment over a specific period, accounting for both capital appreciation (NAV changes) and dividend distributions.

2. How Does the Calculator Work?

The calculator uses the mutual fund return formula:

\[ Return = \frac{(NAV_{end} - NAV_{start} + Dividends)}{NAV_{start}} \times 100 \]

Where:

\( NAV_{end} \) — Net Asset Value at the end of the period (USD/unit)
\( NAV_{start} \) — Net Asset Value at the start of the period (USD/unit)
\( Dividends \) — Total dividends received during the period (USD)

Explanation: This formula calculates the total return percentage by considering both the change in NAV and any dividend income received during the investment period.

3. Importance of Return Calculation

Details: Accurate return calculation is crucial for evaluating investment performance, comparing different mutual funds, and making informed investment decisions based on historical performance.

4. Using the Calculator

Tips: Enter NAV start and end values in USD per unit, and total dividends received in USD. All values must be positive numbers with NAV start greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is NAV in mutual funds?
A: NAV (Net Asset Value) represents the per-unit market value of a mutual fund, calculated by dividing the total value of all securities in the portfolio by the number of units outstanding.

Q2: Why include dividends in return calculation?
A: Dividends represent actual cash returns to investors and are an important component of total return, especially for income-focused mutual funds.

Q3: What time period should I use for calculation?
A: You can calculate returns for any period - daily, monthly, quarterly, or annually. Ensure both NAV values correspond to the same time points.

Q4: How does this differ from simple price return?
A: This is total return calculation which includes both capital gains (NAV change) and income (dividends), providing a more comprehensive performance measure.

Q5: Can negative returns occur?
A: Yes, if the ending NAV plus dividends is less than the starting NAV, the return will be negative, indicating a loss on the investment.