1. What is Equity Fund Return?

The Equity Fund Return measures the total return of an equity fund, accounting for both changes in Net Asset Value (NAV) and any distributions made during the period. It provides investors with a comprehensive view of performance.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( \text{NAV}_{\text{start}} \) — Starting Net Asset Value (currency)
• \( \text{NAV}_{\text{end}} \) — Ending Net Asset Value (currency)
• \( \text{Distributions} \) — All distributions made during the period (currency)

Explanation: The equation calculates the total return by considering both capital appreciation (NAV change) and income (distributions) relative to the initial investment.

3. Importance of Fund Return Calculation

Details: Calculating fund returns accurately is essential for performance evaluation, comparison with benchmarks, and making informed investment decisions.

4. Using the Calculator

Tips: Enter all values in the same currency unit. The starting NAV must be greater than zero. The result is expressed as a percentage.

5. Frequently Asked Questions (FAQ)

Q1: What types of distributions are included?
A: All cash distributions including dividends, capital gains, and return of capital should be included.

Q2: Over what time period should this be calculated?
A: Typically calculated for specific periods (monthly, quarterly, annually) depending on analysis needs.

Q3: How does this differ from simple price return?
A: This total return method accounts for both price changes and distributions, providing a more complete performance picture.

Q4: Should taxes be considered in the calculation?
A: This is a pre-tax calculation. For after-tax returns, you would need to account for tax liabilities on distributions.

Q5: Can this be used for comparing different funds?
A: Yes, when calculated over the same time period, this allows for apples-to-apples comparison between funds.