Calculation method of Fund return and Evaluation of Fund profitability

When investors choose fund products, fundsBaitnearmeRate of return is an important reference index.BaitnearmeKnowing how to calculate the rate of return of a fund can help investors better evaluate the profitability of fund products. This article will introduce in detail the method of calculating the rate of return of the fund and how to use this information to evaluate the profitability of the fund.

I. the calculation method of fund rate of return

The rate of return of the fund is an important index to measure the investment income of the fund, which is usually expressed as a percentage. The rate of return of the fund can be calculated from different periods of time, such as daily return, weekly return, monthly rate of return, annual rate of return and so on. Different types of fund products, their yield calculation methods are slightly different, the following are several common fund yield calculation methods.

oneBaitnearme. Net growth rate method

The net growth rate method is the most direct method to calculate the rate of return of funds, which is suitable for all types of fund products. The calculation formula is as follows:

Fund return = (current net worth-initial net value) / initial net value × 100%

Take a stock fund as an example, assuming that its initial net value is 1.Baitnearme.5 yuan, the current net value is 1.6 yuan, then the fund yield is: (1.6-1.5) / 1.5 × 100% = 6.67%.

two。 Total rate of return method

The total rate of return method is mainly used for money market funds and other fixed income fund products, in addition to considering the changes in the net value of the fund, but also need to consider the dividend income of the fund. The calculation formula is as follows:

Fund yield = [(final net value + period dividend) / opening net value-1] × 100%

For example, if the initial net value of a money market fund is 1 yuan, the period dividend is 0.02 yuan, and the final net value is 1.03 yuan, then the rate of return of the fund is: [(1.03 + 0.02) / 1-1] × 100%.

3. Internal rate of return method

The internal rate of return method is mainly used to evaluate the rate of return of fund products invested on a regular basis, and is suitable for fixed investment fund products. The calculation formula is as follows:

Fund rate of return = [(1 + yield per period) ^ investment period-1] / investment period

For example, investors set a monthly investment of 1000 yuan for a total of 12 months, with total assets of 12500 yuan at the end of the period. Assuming a return of 0.5% for each period, the fund yield is: [(1 + 0.005) ^ 12-1] / 12 ≈ 6.82%.

Second, how to evaluate the profitability of the fund

When evaluating the profitability of fund products, investors should not only pay attention to the rate of return of the fund, but also need to comprehensively consider the following factors:

1. The investment style of fund managers

The investment style of fund managers has an important impact on the profitability of the fund. Investors can understand whether their investment style is in line with their risk tolerance and return expectations by studying the historical performance and investment strategies of fund managers.

two。 Performance of the Fund

Investors can check the long-term and short-term performance of the fund and understand the profitability and risk level of the fund by comparing the performance of similar funds. At the same time, we should pay attention to analyze the volatility of fund performance and choose fund products with small fluctuations and stable profits.

3. Expenses of the fund

The fees of the fund will directly affect the actual returns of investors. When choosing fund products, investors need to pay attention to fund management fees, custody fees, sales service fees and other fees, and try their best to choose fund products with lower fees.

4. Macroeconomic environment of the market

The profitability of the fund is affected by the market macroeconomic environment. Investors need to pay attention to domestic and foreign economic policies, monetary policies and other macroeconomic factors, as well as industry development trends, in order to judge the profit prospects of the fund.

To sum up, when evaluating the profitability of fund products, investors should comprehensively consider such factors as the rate of return of the fund, the investment style of the fund manager, the performance of the fund, the cost of the fund and the macroeconomic environment of the market. Through comprehensive analysis, we can better choose the fund products that are suitable for us.