What is the Total Return on an investment in a mutual fund?

Question

Is it the return that you get after all expenses are paid? Is it the final return that you receive? So if you get a total return of 8% did you actually make 8% or are there other expenses that need to be figured in to find out just how much you made?

Answer 1

Normally the return on a mutual fund that is posted on the mutual fund's website already includes all of the fees associated with the fund. Mutual funds are re-priced at least once a day - sometimes every second - and so the current price per share of mutual fund already reflects the amount the fund charges each individual investor. You can also use the formula below:

(Cost of shares at original purchase - Value when closing position)

Divided by

Cost of shares at original purchase.

Then, you should get a decimal which you multiply by 100 to get your percentage gain.

Hope this helps!