A mutual fund has a NAV of $46.20 at the beginning of the year. The fund distributes a dividend of $0.32 and a capital gain of $0.87 at the end of the year. If you purchased 2,000 shares at the beginning of the year and the end of year NAV was $49.10, what was your return for the year?

Question

Quizplus · Accepted Answer

The return is calculated as [(End NAV - Start NAV + Dividends + Capital Gains) / Start NAV] * 100. Here, [(49.10 - 46.20 + 0.32 + 0.87) / 46.20] * 100 = 8.85%.

A Mutual Fund Has a NAV of $46