NAV - Net Asset Value - How to calculate return for Mutual Fund?



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How to calculate return for Mutual Fund? wheather it is calculated on the fund invested netting of buy and sell?

1 Answer(s)


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Hi Mr.Sayan, the NAV or Net Asset Value is used to calculate returns from a mutual fund. The most common way is Point to point returns - These returns are calculated by considering the NAVs at two points in time-entry date and exit date. Suppose you invested in a mutual fund scheme in January 2012 at a NAV of `12. Now, if the NAV were to rise to `32 on the exit day, say, January 2013, using point-to-point returns you'll find that your fund has generated an absolute return of 166.67% =(32-12)/12