How to Compare the Actual Returns of Mutual Funds

Calculate your own mutual fund yield.

Every mutual fund company publishes detailed statistics on how well, or how poorly, their funds fared for the past three months, six months, one year, three years and so on. But in the end, it is the actual return your funds generate that matter most to you. Taking the time to calculate your own individual mutual fund returns is the best way to make sure you are making progress on your goal of a secure retirement, a good education for your children or other long-term goals.

Instructions

1. Gather your mutual fund statements from the past year. Start with the statement from the beginning of the year and write down the value of the fund from that time period.

2. Add any additional investments you made throughout the year. These additional investments should be listed on your monthly statements. Calculate the sum of the money you invested and the balance as of the beginning of the year.

3. Find your balance as of the end of the year. Subtract the figure from step 2 from that balance to get your total gain. If the result is negative, you have a negative return for the year.

4. Divide your gain or loss by the total from step 2. Multiply the result by 100 to get your percentage gain. For instance, if your starting balance was $5,000, you invested $500 throughout the year and your ending balance was $6,000, you have a percentage gain of just over 9 percent.

References

• BYU.edu: Personal Finance: Calculate Mutual Funds