Table of Contents
Are returns from mutual funds guaranteed?
Mutual funds don’t guarantee capital protection or fixed returns. However, this is a good thing as mutual funds would be a poor investment product if they did. The purpose of investing in mutual funds is to earn higher returns than what traditional investment options offer.
What is the difference between actual return and expected return discuss why?
Actual return can be calculated using the beginning and ending asset values for the period and any investment income earned during the period. Expected return is the average return the asset has generated based on historical data of actual returns.
What is a realistic return on mutual funds?
For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8\%-10\%. For bond mutual funds, a good long-term return would be 4\%-5\%.
How are returns calculated in mutual funds?
Net Asset Value of Mutual Fund indicates its price and is used in calculating returns from your Mutual Fund investments. Return over a period is calculated as the difference in sale date NAV and purchase date NAV upon purchase date NAV and converted to percentage by multiplying the result by 100 .
What is the difference between return and expected return?
The required rate of return represents the minimum return that must be received for an investment option to be considered. Expected return, on the other hand, is the return that the investor thinks they can generate if the investment is made.
Is income from mutual funds taxable?
As per the amendments made in the Union Budget 2020, dividends offered by any mutual fund scheme are taxed in the classical manner. That is, dividends received by investors are added to their taxable income and taxed at their respective income tax slab rates.
How much return do you get from mutual funds?
Estimated Returns from Various Mutual Funds in India
| Scheme Name | 1 Year | 3 Years |
|---|---|---|
| Kotak Select Focus Fund (G) | 8.55\% | 13.40\% |
| Mirae Asset India Equity Fund – Reg (G) | 13.44\% | 13.71\% |
| Parag Parikh Long Term Equity Fund – Reg (G) | 15.97\% | 11.44\% |
| SBI BlueChip Fund – Reg (G) | 12.03\% | 11.50\% |