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Rate of Return on Mutual Funds

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From Quick Guide: Guide to Mutual Funds

Summary: The rate of return on mutual funds is calibrated over investment time. Find out more about the rate of return on mutual funds with expert tips from a registered financial consultant in this free video on financial planning.

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By Patrick Munro
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Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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Video Transcript

"This is financial adviser Patrick Munro talking about what is the rate of return on a mutual fund. A rate of return is really an interest definition where by an individual will place dollars into a mutual fund. Over time those dollars will perform inside the mutual fund and the mutual fund will give back interest on the money in the form of dividends, stock buy back repurchase or in fact for some high rate mutual funds they'll give back interest similar to a certificate of deposit. This type of interest is calibrated over the amount of time that the investor has had the money in the fund, and if it's two, three or four years the rate of return will reflect how much you have made in the fund. This is Patrick Munro financial adviser discussing the average rate of return in mutual funds."

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