Total return on mutual funds includes distribution and change of price of net asset value (NAV). Distribution refers to money that you receive as a result of your investment in a mutual fund. It is similar to the interest earned in a bank account or coupon payments of bonds, or dividends from stocks. Assuming you have reinvested your distributions to buy additional shares of mutual funds, the way to figure out the return on a mutual fund is to use this equation: Total return = [(M – P) / P] ´ 100% where M = (market NAV) ´ (number of shares purchased + distributed shares) P = (purchased NAV) ´ (number of shares purchased) Two years ago, Connie bought 100 shares of XYZ Mutual Funds at \$45 NAV. She gained 5.5 shares as a result of reinvesting distributions. The NAV of XYZ published today in The Wall Street Journal  is \$58. What is Connie’s total return on investment of the mutual fund? Total return = [(M – P) / P] ´ 100% Total return = [(58 ´ (100 + 5.5) – 45 ´ 100] / 45 ´ 100 = 1619 / 4500 = 0.35978 or 35.978% say 36% Connie’s total return of the XYZ Mutual Funds is 36% in two years. Cindy bought 200 shares of Fidelity Select Computer at \$50 NAV. The Select Computer is a loaded fund with 1% charge in buying and 1.5% in selling. She sold the fund one-year later at \$70 NAV before any distributions. What is the rate of return of the investment? Estimate the answer: Less than 50% Between 50% and 60% Over 60%