You invest $100,000 today in a mutual fund. All dividends are reinvested in additional shares.
The performance of your investment over four years is as follows:
|
Year |
Investment Value at Start of Year |
Total Return for Year |
Investment Value at End of Year |
ROI for Year |
|
1 |
$100,000.00 |
$15,000.00 |
$115,000.00 |
15.0% |
|
2 |
$115,000.00 |
($22,000.00) |
$93,000.00 |
–19.1% |
|
3 |
$93,000.00 |
$43,500.00 |
$136,500.00 |
46.8% |
|
4 |
$136,500.00 |
($450.00) |
$136,050.00 |
–0.3% |
How would most mutual funds advertise ROI performance for the four years in this example?