In previous posts we explained to you what an investment fund is and what are its main features.

We’ll talk now about how calculate the return on an investment fund:

To calculate the return on a unitholder’s shares, i.e. to know how much they have earned, you need to determine the percentage of variation in net asset value between the date of subscription/purchase and the current date (or if the units have been sold, the date of redemption).

Therefore, the return delivered by a fund may be either positive or negative depending on the performance of net asset value.

Return = [(final net asset value – initial net asset value) / initial net asset value] X 100

Bellow is an example in order to better illustrate the explanation:

Two years ago Juan invested €5,000 in an investment fund and subscribed for 50 units with a net asset value of €100 per unit.

Today he has redeemed the 50 units at a net asset value of €120 per unit, thus receiving €6,000.

He has earned a return of 20%:

R = [(6,000 – 5,000) / 5,000 ] X 100 = 20%

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