Mutual fund is an investment company, investment funds pool belonging to a portfolio, many people such as stocks and bonds. Shareholders in the proportion of each pool (the company's mutual fund investment) portfolio.

In assessing the performance of investment funds, dividend income by measuring the investment performance of investment funds, investment fund and, as a proportion of the shareholders of their investment, after deducting all expenses the background. However, in order to calculate a mutual fund's performance, we must first calculate the net assets of investment funds.

Net asset value (NAV) of mutual funds depends on the value of the equity portfolio. For example, mutual fund sales in a $ 10 per share price of 200 million U.S. dollars the total 2000 million. Net asset value (NAV) of mutual funds is 10 U.S. dollars per share, a price of E. coli. If the investment company decided to invest in the stock market value of the higher stock market value of the portfolio increased $ 2.50 billion, a share price will be 250 million U.S. dollars 1,000 million = $ 25, which is its net asset value (NAV) of the common Fund.

After the net asset value (NAV) can be calculated in the performance of investment funds. Suppose the net asset value of 25 U.S. dollars (net) in accordance with our example, paid to the portfolio in the U.S. $ 2 interest in the stock dividend to shareholders, then the calculation of the dividend yield rate of more than net asset value (NAV) of the. Therefore, in our example, the investment fund's performance is 2 $ / $ 25 = 8%.

Important factor to consider

Typically, each year the performance of mutual funds, investors can more easily this year, according to their statements.

A performance of a meaningful, if the date of investing is based on performance. Otherwise, this is a different fund performance of a simple comparison.

A performance is directly related to market interest rates in order to fully reflect the market's volatility.

The yield calculations easy, as long as (a reverse) and complex (re-investment basis) interest rates.

Capital gains are not included in the calculation of the profitability of an investment fund, because it can not be accurately quantified, because they are subject to market fluctuations.

Suppose a net asset value of 25 dollars and 2 yuan bonus (net) in the above example, we found that rate of return of 8%. If the stock price fell to 20 yuan, and therefore its net asset value (NAV) will be the $ 20, rather than 25 yuan, then the investment fund's performance will be 20 / $ 20 = 10%. Thus, access to performance, but the stock price has fallen. Accordingly, investors should maintain regular investments in order to be able to re-stock portfolio allocation, and retain their best to control the value of the portfolio, taking into account market fluctuations.

Tags: Determining, fund, investment, market interest rates, Mutual, mutual fund investment, NAV, Performance, U.S., yield