| Every investor hopes to put his money into an | | | | compound average annual return rate basis. This |
| investment scheme with the hope of getting | | | | is to say that in addition to earning a return to |
| returns out of it. For that reason, the rate of | | | | your original investment, you also earn a return |
| return is among the top factors that one should | | | | on the returns themselves. However, the figures |
| consider when investing. Mutual funds are a type | | | | take into account any expenses that have been |
| of investment that are characterized by unique | | | | incurred in the process. These include sales |
| rates of returns. They are popular with many | | | | commissions, capital gains (or losses) and |
| investors because they bring with them some | | | | dividends, all of which are expressed in |
| attractive returns, and the investor is not directly | | | | percentages. |
| involved in their management. | | | | It is worth noting that the returns one gets are |
| The returns on these investments help one to | | | | greatly influenced by a number of other factors |
| determine whether the value of the investment | | | | that an investor should carefully analyze before |
| has increased or decreased over any given period | | | | investing. These factors include but are not limited |
| of time. They are calculated in percentages, and in | | | | to the funds charges, fees and expenses, taxes |
| most cases this is done on an annual basis. | | | | that are payable at times, age and size of the |
| Calculation of the percentages is not as hard, and | | | | fund as well as the risk factors involved. It is only |
| in many instances, the percentage will be given to | | | | wise for an investor to carefully look at these |
| the investor by the mutual fund manager. | | | | factors and how they will positively or negatively |
| Mutual funds returns are normally calculated on a | | | | affect the returns. |