The returns on the funds are calculated based on the change in the NAV over time. The NAV or Net Asset Value represents the value of the Shareholders’ investment in the fund. It is calculated by adding the market value of all assets in the fund, including equity holdings and cash, subtracting any liabilities and then dividing that value by the number of outstanding shares in the Fund. For example, if you bought 200 shares at $100 and subsequently redeemed them at $105. The appreciation in the share price is $105 subtract $100, which equals $5 or 5%. The return on your investment is $5 multiplied by 200 shares which equal $1000.