Enter the initial value, current value, and distributions received during the period to determine the return on the mutual fund.

## Return on Mutual Fund Formula

The following formula is used to calculate a return on a mutual fund.

RMF = (CV-IV+D) / IV * 100

- Where RMF is the return on mutual fund (%)
- CV is the current value ($)
- IV is the initial value of the fund ($)
- D is the distributions received during the period

## Return on Mutual Fund Definition

A return on a mutual fund is defined as the percentage increase of the value of a mutual fund including distributions over a holding period.

## Return on Mutual Fund Example

How to calculate a return on a mutual fund?

**First, determine the initial price.**This is the initial investment made in the fund.

**Next, determine the current price.**Determine the current value of the investment in the mutual fund.

**Next, determine the total distributions.**Calculate the total distributions received over the holding period.

**Finally, calculate the ROI.**Calculate the return on the fund using the equation above.

## FAQ

**What is a mutual fund?**

A mutual fund is a type of financial security that is made up of a pool of money collected from many individuals that are then invested in various stocks.