How is return since inception different from annualised returns in a fund that has declared dividend?
- Gautam Bhat
The return since the launch of a fund is calculated from the date the new fund offering is closed with an opening NAV of Rs 10. However, annualized returns on a fund that has declared dividend is calculated using their adjusted net asset value (NAV). The adjusted 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.