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Calculation of Annualised Return

Dividend and annualized returns

How is annualized return calculated for a fund that has declared dividend?
-    Gaurav Nampurkar

For funds that have a dividend option, their annualized returns are calculated using their adjusted NAVs. The adjusted net asset value (NAV) of a fund is calculated assuming that the dividends paid by the fund have been re-invested in the units of the scheme at the immediate ex-dividend NAV.

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