Mutual Fund Results Calculator

Mutual Fund Return Formula:

\[ Return = \frac{(Ending\ NAV - Beginning\ NAV)}{Beginning\ NAV} \times 100\% \]

Return (%):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Mutual Fund Return?

Mutual fund return measures the performance of a mutual fund investment over a specific period. It calculates the percentage change in Net Asset Value (NAV) from the beginning to the end of the investment period, representing the total return earned by investors.

2. How Does the Calculator Work?

The calculator uses the mutual fund return formula:

\[ Return = \frac{(Ending\ NAV - Beginning\ NAV)}{Beginning\ NAV} \times 100\% \]

Where:

\( Ending\ NAV \) — Net Asset Value at the end of the period (USD/unit)
\( Beginning\ NAV \) — Net Asset Value at the beginning of the period (USD/unit)

Explanation: This formula calculates the percentage return by comparing the change in NAV relative to the initial investment value.

3. Importance of Return Calculation

Details: Calculating mutual fund returns is essential for evaluating investment performance, comparing different funds, making informed investment decisions, and tracking portfolio growth over time.

4. Using the Calculator

Tips: Enter both NAV values in USD per unit. Ensure the beginning NAV represents the starting point and ending NAV represents the final value of your investment period.

5. Frequently Asked Questions (FAQ)

Q1: What is NAV in mutual funds?
A: NAV (Net Asset Value) is 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 outstanding units.

Q2: Does this calculation include dividends?
A: This basic return calculation based on NAV changes includes capital appreciation but may not account for dividend distributions unless they are reinvested.

Q3: What time period should I use for calculation?
A: You can calculate returns for any period - daily, monthly, quarterly, or annually. Ensure consistent time periods for accurate comparisons.

Q4: How does this differ from total return?
A: Total return includes both capital appreciation and dividend/interest distributions, while this calculation focuses on NAV changes only.

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