What is the meaning of Holding Period Return? Calculate holding period return for an unit holder who bought a unit at ₹24.60 and received a dividend of ₹3 per unit during the period. Face value of the unit is ₹10 and cur

Meaning of Holding Period Return (HPR) Holding Period Return is the total return received from holding an asset or portfolio of assets over a period of time, generally expressed as a percentage. Holding period return is calculated on the basis of total returns from the asset or portfolio i.e., income plus changes in value of asset. It is particularly useful for comparing returns between investments held for different periods of time. Calculation of Holding Period Return: The formula for Holding Period Return is: Holding Period Return = [Income + (Current Unit Price - Original Value)] / Original Value × 100 Given values: Original Value (Purchase Price) = ₹24.60 per unit Income (Dividend received) = ₹3 per unit Current Unit Price = ₹28.69 per unit Substituting the values into the formula: HPR = [₹3 + (₹28.69 - ₹24.60)] / ₹24.60 × 100 HPR = [₹3 + ₹4.09] / ₹24.60 × 100 HPR = ₹7.09 / ₹24.60 × 100 HPR = 0.28821 × 100 HPR = 28.82% Therefore, the holding period return for the unit holder is 28.82% .