A mutual fund has a NAV of ₹11.50 at the beginning of the year. At the end of the year NAV increases to ₹12.10. Meanwhile the fund distributes ₹0.80 as dividend and ₹0.70 as capital gains. Had these distributions been re

When all dividends and capital gains distributions are reinvested into additional units of the fund (₹11.80/unit) : Dividends and capital gains per unit: ₹0.80 + ₹0.70 = ₹1.50 Total received from 200 units: ₹1.50 × 200 = ₹300.00 Additional units acquired: ₹300 / ₹11.80 = 25.42 units Value of 225.42 units held at the end of year = 225.42 units x ₹12.10 = ₹2727.58 Price paid for 200 units at beginning of year = 200 units x ₹11.50 = ₹2,300 The holding period return would be = (₹2727.58 - ₹2300) / ₹2300 = 18.59%