I am not able to understand how the calculation of return works. When i look into the fund history, I see that the YTD performance is 8.74%. So if i had invested 2500$ i should have already got $200, but I havent.
so is the 8.74% that they claim is in capital gain or dividend ?
How do I know when the fund will actually pay the investor.
2007-09-26 14:32:08 · 3 answers · asked by srihari p 1 in Business & Finance ➔ Investing
$ 2500. worth of EGLRX on 1/3/07 at $ 40.19 would have been 62.204 shares...today they are worth $44.75 each or $ 2783.65...a gain of $ 283.65 ( divided by 2500 equals 11.3%)
Your gain is there on your statement...now if you want the money in your hand, you must sell ... that is how it works... and working well , I could add...11% ? in 9 months ?
2007-09-26 19:47:57 · answer #1 · answered by jebediabartlett 6 · 0⤊ 0⤋
First off... this is an interesting fund. Generally not the place for a novice. Hopefully this has a small place in your "Asset Allocation". I subscribe to MorningStar & will check it out further. Thanks.
Regarding your question. The answer is pretty lengthy, but in effect, $2500 invested on 1/1/2007 would have increased in value to $2718.50. There is no "capital gain" or dividend until it's declared by the fund. The amount "declared" will have no relation to the increase/decrease of the NAV. You could have a negative return & yet.... have a gain declared.
First rule of investing: Never buy anything you don't fully understand. The question you ask is pretty basic to Mutual Funds and can be found in any good books on the subject. Read at least two. It will help you get rich quicker!
2007-09-26 16:09:56 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
the extra useful selection is Dividend money in case you talk approximately tax. As a entire of five years investment dividend fund will supply extra income that growth fund. yet once you're short term decide for growth fund.
2016-11-06 11:40:10 · answer #3 · answered by feiss 4 · 0⤊ 0⤋