GST Certification Course

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Returns on mutual fund.

This query is : Resolved 

15 November 2013 Dear all,

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 !

Thank you.

15 November 2013 the return is calculated as under:

(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.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


GST caclubindia books Score More Study Less


Answer Query