How to calculate net returns for a mutual fund investment?

[gotoumesh]

Can some body help me calculating net returns from a Mutual fund investment.
For SIP case and lump-sum mode.
What I understand is we need to take exit load ,FMC charges and taxes into consideration. Any other charges missing?
What charges does expense ratio indicate?
What charges are levied on prorate bases and what charges at yearly basis?

 

[nikrod]

Can some body help me calculating net returns from a Mutual fund investment.
For SIP case and lump-sum mode.
What I understand is we need to take exit load ,FMC charges and taxes into consideration. Any other charges missing?
What charges does expense ratio indicate?
What charges are levied on prorate bases and what charges at yearly basis?

Hi gotoumesh,

I am actually in little hurry now. Will surely reply on Monday.

Do reply to this thread again if no replies come by Tuesday. It will push thread up and also show up in unread threads.

Happy Weekend

 

[nikhilfake]

For MF use ValueResearchOnline's portfolio. Its easy to set up SIP's and lumpsum values and get annualized and total gains till now.

 

[gotoumesh]

For MF use ValueResearchOnline's portfolio. Its easy to set up SIP's and lumpsum values and get annualized and total gains till now.

Thanks nikhilfake,

Valueresearch calculator gives returns using following formula

(invest NAV- redemption NAV)/ invest NAV

invest NAV will be 'average invest NAV' incase of SIP

Above calculation won't take any MF associated cost into consideration.

 

[sln1941]

Thanks nikhilfake,

Valueresearch calculator gives returns using following formula

(invest NAV- redemption NAV)/ invest NAV

invest NAV will be 'average invest NAV' incase of SIP

Above calculation won't take any MF associated cost into consideration.

Mf associated costs are accounted while arriving at the NAV. In the calculations one should take dividends received also into account if it is not a growth scheme and the returns is being worked out covering a dividend yield.

 

[gotoumesh]

Mf associated costs are accounted while arriving at the NAV. In the calculations one should take dividends received also into account if it is not a growth scheme and the returns is being worked out covering a dividend yield.

What you said is correct about calculating NAV value.

What I wanted to calculate is the net amount I will be getting on any particular selling day.

formula is

= left over units on the selling day x NAV on that day x 0.98.
assuming 2% exit load

The thing i am not clear is the number of units leftover with me on any day. Units are deducted to account FMC charges (varies between 0.5% to 2%) , whether this deduction is done prorate basis or yearly?

 

[sln1941]

What you said is correct about calculating NAV value.

What I wanted to calculate is the net amount I will be getting on any particular selling day.

formula is

= left over units on the selling day x NAV on that day x 0.98.
assuming 2% exit load

The thing i am not clear is the number of units leftover with me on any day. Units are deducted to account FMC charges (varies between 0.5% to 2%) , whether this deduction is done prorate basis or yearly?

I am not sure whether it is annual or periodic. To the best of my knowledge your formula is correct and no FMC charges are deducted at the time of selling.

 

[nikrod]

I am not sure whether it is annual or periodic. To the best of my knowledge your formula is correct and no FMC charges are deducted at the time of selling.

Agree with the above. All fund management charges are included while coming to NAV. The FMC Charges are deducted every day. So for example if annual expense ratio is 2%, 2/365 = 0.54794 basis points of NAV will be charged every day.

 

[praveen taneja]

Agree with the above. All fund management charges are included while coming to NAV. The FMC Charges are deducted every day. So for example if annual expense ratio is 2%, 2/365 = 0.54794 basis points of NAV will be charged every day.

pls explain it in detail thnx in adavance

 

[rajivnc]

What you said is correct about calculating NAV value.

What I wanted to calculate is the net amount I will be getting on any particular selling day.

formula is

= left over units on the selling day x NAV on that day x 0.98.
assuming 2% exit load

The thing i am not clear is the number of units leftover with me on any day. Units are deducted to account FMC charges (varies between 0.5% to 2%) , whether this deduction is done prorate basis or yearly?

Have you purchase your MFs via DIRECT or via a Broker. May be you are getting charged by the broker