How to Calculate Mutual Funds
Mutual fund companies report the performance of each fund on an annual basis and send an annual report containing that information to each of their shareholders. But even though that total return and performance information is useful, it is the actual return you earned during the year that matters most to you. Taking the time to calculate your actual performance, based on the money you invested originally and what you added during the year is the best way to make sure your investments are on track.
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Instructions
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Locate your mutual fund statement for the beginning of the year. Write down the total value of the account as of Jan. 1.
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Review your mutual fund statements and write down the amount of any purchases you made during the year. If you have monthly transfers scheduled between your bank account and the mutual fund be sure to include those as well.
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Add the amount of your additional purchases during the year to the value of the mutual fund at the beginning of the year. Subtract that total from the current value of the fund to get your net gain for the year. If the balance was higher at the beginning of the year, you will end up with a negative number, representing a loss.
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Divide the gain or loss by the starting balance of the fund as of Jan. 1. This is your total percentage gain or loss for the year. For example, if your mutual fund balance was $50,000 on Jan. 1, you added $5,000 during the year and your ending balance was $60,000, your total gain would be $5,000. In percentage terms that gain would be 10 percent, or $5,000 divided by $50,000.
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