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agreed with specialist valuable comments.
There is often confusion in the minds of investors between fund performance and performance. A fund with a declining net asset value may yield to its subscribers. Similarly, a fund with little or no return can be one of the best performers in its class. Performance and performance are two pieces of information that may be useful to the investor, if used properly. Performance of a fund The return of a fund is the income distributed to its shareholders or unitholders in that fund. It comes from dividends, for an equity fund, or coupons, for a bond fund, received in respect of participating interests. Return is therefore the component of distributed income that contributes to the total performance of the fund. There are several methods of calculating yield. Over 12 rolling months, for example: are added all the income distributed over the last 12 months, then divided by the last known end-month net asset value. Performance of a fund The performance of a fund is the change in the net asset value of the fund between two dates. It can therefore appreciate or depreciate under the effect of the performance of the securities held by the fund, and other factors such as fees, changes in outstandings ... The other component of performance is income distributed as a dividend or coupon, as previously discussed. Calculation The calculation of the performance is therefore represented by the following formula: Total Performance = (Final Position - Initial Position + Yield) / Initial Position x100 Example: You buy 10 units of a fund at 9 euros per share. One year later, the net asset value of the fund is 11 euros per share, plus 1 euro of dividend. The total performance of the fund is therefore: (€ 11 - € 9 + € 1) / € 9 x 100 = 33.33, a performance of 33%. Important notes The performance of a fund must be evaluated over several periods (1 year, 3 years, 5 years, 10 years depending on the information available and provided that the same manager has been in charge of the fund during these periods) for to get an idea of the manager's ability to generate performance for investors. It must also be assessed against the risk taken by the manager. This performance is also compared to that of a benchmark or benchmark, or a category (to compare the fund with other managers in the same asset class
