Before making a mutual fund investment, investors frequently review a mutual fund's average annual return as a way to measure the fund's long-term performance. The three components that contribute to the average annual return of a mutual fund are share price appreciation, capital gains, and div...
Theaverage annual returnis defined as a percentage figure which is used while reporting the previous returns, like 3-, 5-, and 10-year average returns of a mutual fund. The average annual return is calculated net of a fund’soperating expense ratio. Moreover, it does not include sales cha...
Theaverage annual return (AAR)is the percentage showing the return of a mutual fund in a given period. In other words, it measures a fund's long-term performance, so it's a vital tool for investors considering a mutual fund investment. ...
Low expenses can translate to higher returns:Expenses for a mutual fund are taken from the fund's assets before the investors receive their net return. For example, if a fund has an expense ratio of 1.00%, and the fund has a return before expenses of 10.00%, the net return to the inve...
The average return refers to a summary of any listing of mutual fund returns. Among the different averages are arithmetic average, geometric average, and weighted average. Having an understanding of the differences in what averages represent and how they are calculated is recommended because the ...
Annualized arithmetic average return, also known as the average annual return or the arithmetic mean return, is a commonly used measure to evaluate the performance of an investment or a portfolio over a certain period of time. It represents the average rate of return achieved per year over the...
In amutual fundcontainingdebt securities, the average amount of time until the debt securitiesmature. It is calculated by adding together the total amount of time until maturity and dividing by the number of debt securities in the mutual fund. The shorter the average maturity is, the less the...
This calculator relies on historical price data for mutual funds provided byTiingo. Please note that the calculations do not factor in reinvested dividends. For a more comprehensive analysis that includes dividend reinvestment, we recommend using ourmutual fund total return calculator. Additionally, you...
Overall, average annual growth rate is a helpful metric that applies to several areas of finance. It’s great for finding the average return on an investment. But it has certain limitations that may make you want to choose a different measure to work with. Still, this doesn’t prevent it...
How is the net asset value (NAV) of a mutual fund determined? What is meant by the term, marked-to-market daily? (a) What is universal life insurance? (b) How does it differ from term life and whole life? What is the weighted ...