Introduction to Calculating Your Fund's Personal Rate of Return
(1 of 5)
If you've ever noticed that your fund's rate of return differs from what the fund reports, here's why (hint: it's in the calculation).
What you will learn
- Reported Returns versus Personal Rates of Return
- How to Calculate Your Personal Rate of Return
- What Personal Returns Tell You
What do you know?
Introduction to Calculating Your Fund's Personal Rate of Return
Your fund says it finished the year up 15%. Some analyst report says the same. Yet you only made 10% on the fund for the year.
The fact is, returns depend a lot on how you calculate them. Your actual investment or personal rate of return in a fund may be better—or worse—than you think. Knowing your portfolio’s actual returns can help you determine if you’re on track to meet your investment goals, and whether your funds are living up to your expectations.