Posted by kcchongnz > 2013-01-13 11:32 | Report Abuse

Many people have invested in unit trusts. Just what is the compounded annual return of your investment? Aren't you interested in this figure so that you can compare with alternative investment, for example if you withdraw EPF money to invest, you would be interested in how is the return of unit trust as compared to if you were to keep your money in EPF, or as against the KLCI etc? The following is a guide of how you can calculate the number. Annual return R%= [Value (now) / Cost(then)]^(1/n)-1 n = number of years since invested For example, if initially you take out RM2000 from your saving account or EPF to invest in a Public Mutual Huge Return Fund. The fund was selling at 20 sen per unit. After the initial cost of say 6.5%, your number of units is 9350 (not 10000). Say after three years, and with dividends reinvested, you now have 11000 units with NAV now at 25 sen. The total amount you have now is RM2750 (11000*0.25). Your compounded annual return is (2750/2000)^(1/3)-1 equals to 11.2%. This is not bad if you compare with the long-term return of equity of 10-12% per year. You would be happy that your investment returns much better than EPF. So why not calculate your number and see where you stand. And share with us this number too.