WildTigerTwirl| How to calculate the benefits of equity funds: How to calculate the benefits of equity funds

As an important financial tool to invest in the market, the benefit calculation of stock fund is very important for investors. This article will describe in detail how to calculate the benefits of stock funds, and provide some practical calculation methods to help investors make more informed investment decisions.

I. the basic concept of the benefit of stock fund

The benefit of stock fund refers to the difference between the return of investors investing in stock fund and the principal invested by them. It can be used to measure the return on investment and is an important indicator to evaluate the management level of fund managers.

Second, the basic method of calculating the benefit of stock fund

There are usually several ways to calculate the benefits of stock funds:

The rate of return in the holding period is a common method to measure the efficiency of funds, which reflectsWildTigerTwirlThe income of investors during the period of holding the fund. The calculation formula is: holding period yield = (selling price-buying price + dividend) / buying price × 100%.

The time-weighted rate of return method is a calculation method considering the impact of capital inflows and outflows on fund returns. It weighs the fund income according to the time order of capital inflow and outflow, so as to get a more accurate fund income.

The internal rate of return method is a calculation method which considers the influence of capital inflow and outflow on fund income. It discounts the income of the fund according to the time order of the inflow and outflow of funds, so as to get a more accurate return of the fund.

Third, how to choose the appropriate calculation method

The following factors need to be considered in choosing the appropriate calculation method:

For short-term investment, we can choose the holding period return method to calculate; for long-term investment, we can choose time-weighted rate of return method or internal rate of return method.

If the inflows and outflows of investors are more frequent, the time-weighted return method and the internal rate of return method are more appropriate.

If investors pay more attention to long-term returns, they can choose the internal rate of return method; if they pay more attention to short-term returns, they can choose the holding period rate of return method.

IV. Case study

Suppose investors buy a stock fund on January 1, 2021, the purchase price is 1 yuan per share, a total of 1000 shares, with a total investment of 1000 yuan. On January 1, 2022, the net value of the fund was 1.2 yuan per share, and investors received a dividend of 0.1 yuan per share during the holding period.

The calculation process is as follows:

By comparing the three calculation methods, investors can choose the appropriate calculation method according to their investment period, capital inflow and outflow and investment purpose.