How to Figure the Percentage Yield on Mutual Funds
Mutual funds allow thousands of people to pool their funds under the management of professional investors so they can create a diversified portfolio. However, not all funds are created equal. Though past performance does not guarantee future performance, the percentage yield returned by mutual funds does offer one way to compare different funds. To figure the percentage yields, you need to know starting and ending net asset values, as well as how much the mutual fund paid out to investors. The net asset value includes all the assets the mutual fund owns.
Subtract the beginning net asset value from the ending net asset value to figure the change in net asset value for the mutual fund. For example, if you're figuring the annual yield and the net asset value started at $100 and ended at $110, the net asset value increased by $10.Step 2
Add any distributions made to fund owners to the change to figure the total return to investors. In this example if the fund distributed $2, add $2 to $10 to get $12.Step 3
Divide the total return by the starting net asset value to find the rate of return. In this example, divide $12 by $100 to get 0.12.Step 4
Multiply the rate of return by 100 to find the mutual fund's percentage yield. Finishing this example, multiply 0.12 by 100 to get a 12 percent yield.
Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."