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How do you compare managed fund returns?

Discussion in 'Managed Funds & Index Funds' started by AndyB, 7th Feb, 2007.

  1. AndyB

    AndyB Member

    Joined:
    4th Jun, 2006
    Posts:
    12
    Location:
    South Coast, NSW
    I have held four manged funds for nearly a year now and was wondering what the fairest and most accurate method of comparing overall returns was?
    ie taking into account the movement in Unit Price, as well as any distributions you may have recieved. Is there a simple formula that any forumites use?

    Thanks in advance
    Andrew
     
  2. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
    Posts:
    351
    Location:
    Adelaide, SA
    The most common way is income reinvested on a starting balance of 10k for however many years you wish to look at common times are 1,3,5,7 and 10 years. Time and compounding returns make most funds look reasonable.

    If you keep the income working out the yield including franking credits plus the % change of the unit price added together over a fixed time will give you a total performance %.