Question

You invested in the? no-load OhYes Mutual Fund one year ago by purchasing 600 shares of the fund at the net asset value of ?$ 24.51 per share. The fund distributed dividends of ?$2.11 and capital gains of ?$1.58. ?Today, the NAV is ?$26.20. If OhYes was a load fund with a 3.5?% ?front-end load, what would be the? HPR?

Answer 1

Holding Period Return (HPR) for returns over multiple years can be calculated as follows:

Holding Period Return = Income + (End of Period Value – Initial Value) / Initial Value

Initial investment = share purchased * NAV + front end load

= 600 * 24.51 + (0.035 * (600 * 24.51))

= 14,706 + 514.71 = 15220.71

Dividend income = 600 * 2.11 = 1,266

Capital gain = 1.38 * 600 = 828

Ending value = 600 * 26.20 = 15,720

Putting these value in formuls :

HPR = (828 + 1266) + (15,720 - 15,220.71) / 15220.71

= 0.1703 or 17.03 %