Public Mutual (Fund Performance Chart And Calculation) - PART 2

As I promised, now comes the 2nd part of the calculation for funds. What happens when there's distribution given by a particular fund?

Example 1
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Public Balanced Fund (PBF)
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At 17/05/07, NAV price is RM0.9970.

Amount Paid : RM 5,000.00
Sales Charge (6.5%): RM 305.15
Amount Invested : RM 4,694.85

Price (RM) : 0.9970
Units : 4,708.98
Total Cum Cost (RM) : 5,000.00
Avg Cost Per Unit (RM) : 1.0618

At 31/05/07, Rate of Gross Distribution Per Unit given is 9.00sen & Rate of Net Distribution Per Unit given is 8.59sen.

At 01/06/07, NAV price is RM0.9104.

Units (31/05/07) : 4,708.98
Distribution Reinvested : RM404.50
Price (RM) : 0.9104
Units (01/06/07) : 444.31

Balance units : 5,153.29
Total Cum Cost (RM) : 5,000.00
Avg Cost Per Unit (RM) : 0.9703

At 26/07/07, NAV price is RM0.9497.

Units : 5,153.29
Price (RM) : 0.9497
Amount Redeemed/Repurchase (RM) : 4,894.08
Profit/Loss = RM4,894.08 - RM5,000
= -RM105.92

Simple Estimate Return : -2.12%

The fund is just 2 months and has a lot of potential to grow. If we ignore the service charge, actually we're profiting already. That's the main reason why investor should invest at least for a year or more. Service charge won't be significant if you divide by the number of years investing.

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If you used Public Mutual(fund performance graph):

Simple Estimate Return : 4.67 - 6.5 = -1.83%

I’m not sure why there’s a difference of 0.29% using graph and calculation. This is probably due to the management/trustee, etc fees not yet deducted. Cause I’m not sure how the graph at Public Mutual website is compute.