MUTUAL FUNDS

sample computation in investing mutual funds

►the daily NAVPS can be checked through the Philippine Stock Exchange website. click on 'Mutual Funds' under the 'Other Links' section for a list of stocks.

► NAVPS - Net Asset Value Per Share. the value of one share in a fund.

example:
an investor will invest P1 (1peso) in Day1 and he will withdraw in Day5.

given:
investment = P1 (1 peso)

Day 1 - 1.24 (NAVPS)
Day 2 - 1.35
Day 3 - 1.21
Day 4 - 1.19
Day 5 - 1.47

solution:
P1 / 1.24 = 0.806451612 = no. of stocks
0.806451612 * 1.47 = P1.18548387

conclusion:
P1.18548387 > P1
P1.18548387 is greater than P1.
therefore, it's a gain!