A mutual fund had NAV per share of $23.00 on January 1, 2018. On December 31 of the same year, the fund's NAV was $23.15. Income distributions were $0.63, and the fund had capital gain distributions of $1.26. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?

Question

Quizplus · Accepted Answer

The rate of return is calculated as: [(Ending NAV - Beginning NAV + Income Distributions + Capital Gain Distributions) / Beginning NAV] * 100. So, [(23.15 - 23.00 + 0.63 + 1.26) / 23.00] * 100 = 8.87%.

A Mutual Fund Had NAV Per Share of $23