Some mutual funds can only be bought through a broker, which may have purchased by paying a load for some shares. Calculating a mutual fund's rate of return The rate of return on a mutual fund is calculated using total return, which includes any dividends received and the change in share NAV price. Total return calculations assume that all dividends are reinvested in the shares of the fund. Mutual fund performance is measured on an average annualized basis. The Secirities and Exchange Commission requires that mutual funds disclose returns for up to 10 years, if available.
Balanced funds are a blend of stock and bond funds.
These funds can be categorized according to their risk levels. These invest mostly in U.S. Treasuries or government bonds of similar risk. Municipal bond funds. These invest in bonds issued by state and local governments. These invest in Treasuries with shorter maturities, as well as corporate and agency bonds that have comparable risk characteristics and maturities .