The returns on investment come in the form of dividends and capital appreciation. To calculate average compound rate, run a simple worksheet. Any mutual funds comes with a host of costs, these should be carefully examined, before calculating the return expectations. Some mutual funds charge a load, when you purchase the units from a sales person. It may be negotiable also.
All mutual funds charge management fees.
This usually a percentage of total value of the assets of the fund. This fees is to pay for administrative expenses, brokerage, custodial charges, registration fees, wages and bonuses of fund managers etc. Remember, this fees is payable independent of fund s performance. A good measure of such cost is MER, total of all the charges of the mutual fund, including the management fees, divided by fund s assets. Trailer Fees iii.