Question
A mutual fund holds the following assets at the beginning of the year: 7,300 shares of FB, price $180 1250 shares of AMZN, price $1100
A mutual fund holds the following assets at the beginning of the year:
7,300 shares of FB, price $180
1250 shares of AMZN, price $1100
1100 shares of GOOG, price $950
The mutual fund has 400,000 number of shares issued at this point. The mutual fund has 1.2% operating expenses, 0.5% 12b-1 fees and a 4% front-end load. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held by the fund are worth $ 4.4m (before expenses) and there are 410,000 shares outstanding. Just before the end of the year, the fund realized $0.3m capital gains and received $0.2m dividends. What is the reported return on the fund?{Provide your answer in %, rounded to two decimals, omitting the % sign.)
First Calculate NAV0, NAV1 and use the formula r = ((NAV1 - NAV0 + Distributions) / NAV0) to find return of fund
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