Mutual fund gives investor dividend or distribution of capital. Dividend may be required from company, which gives dividend periodically. Moreover, your sponsor invests in blue chip stocks. It can raise your return by high dividend. Your sponsor will give dividend to you. Fixed income funds that invest your fund to fixed income will get interest semi-annually except your sponsor invests in Zero Coupon Bond.

Your return is the difference of today NAV plus capital gain then divided by initial NAV. From information in first paragraph we can count our return are ((25-16) + 0.4) / 16 = 0.5875 or 58.75%. This mutual fund gives you very high return.

Is 58.75% your total real return? No, is not yet. You must calculate you return with other fees. Sponsor will charges you with some expenses. Sponsor charges you front end load at least 6% but may not exceed 8.5%. When you redeem your fund, sponsor charges you back-end load for 5 % or 6%. Operating expenses include company operation like administrative, advisor etc. SEC allows your sponsor to charge for 0.2 – 2 % fee. Meanwhile, 12b-1 is cost for advertising and marketing expenses. Suppose your total fee is 15%. Your total return is return rate minus fee or 43.75% (58.75% - 15%).

Sometimes we find mutual funds with high return charges us by high cost, other side mutual funds with low return charge investor with low returns too. E.g., mutual fund A gives you return 30% and charges you fee for 15%. Meanwhile, mutual fund B gives return just 23% but charges you fee for 9 %. You must careful to find your sponsor. Before start investing mutual funds, you must consider the reputation and cost of investment. You must read prospectus of mutual funds carefully. The prospectus of sponsor contains information about fee as your consideration.