Closed End Mutual fund ?

Hi!

A year ago, a closed-end mutual fund had a NAV (net asset val) of $30/share and was selling at a 3% premium. Today, the same fund has a NAV of 31.20 and selling @ a discount of 2%. The fund just paid me a distrobution of income/cap gains of $1.50. What is the rate of return (ROR) when I purchased the fund one year ago, and what would have been my ROR had I held the assets instead of the fund??

Thanks!!!

Hard to answer all of these questions. First of all you did not mention what the expense ratio of the fund is. If you want to know what your roi would have been had you held the assets, you need to know the expense ratio. There are other things you would also have to know. What and when the assets of the fund were sold and purchased. To emulate their return you would have to emulate their actions.

Do you wish to know your ROI before or after taxes. It makes a difference? Before taxes including your unrealized gain is about 9%. After tax will be somewhat less depending on your tax bracket and your state and local tax rates. Also keep in mind that your brokerage expenses incurred to emulate their actions might very well be considerable on a pro rata basis. They are trading tens of thousands of shares at a time. You would be trading just a few.

gain is 1.2, distribution of 1.5, so your total gain is 2.7 on investment of 30, so 2.7/30 is a return of 9%.

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