Returns on mutual fund.
I want to learn how to calculate Returns on Mutual fund units.
How does a mutual fund generate negative returns ?
Dear experts please provide your valuable feedback !
(Closing NAV - Opening NAV + dividend)/opening NAV
well mutual funds invest in markets. So if the investments lose value, mutual fund shall also generate negative returns.
For eg if a mutual fund invests all its return in reliance industries at Rs 1000 per share. Now if the prices of shares fall from Rs 1000 to Rs 900, the NAV shall fall and consequently MF shall make negative returns.