An investor purchased 300 units of a Mutual Fund at 12.25 per unit on 31st December, 2019. As on 31st December, 2020 he has received - 1.25 as…

Return for the year (all changes on a per year basis) Particulars ₹/Unit Change in price (₹ 13.00 - 12.25) 0.75 Dividend received 1.25 Capital gain distribution 1.00 Total Return 3.00 Return on investment = (3.00 / 12.25) × 100 = 24.49% Alternatively, it can also be computed as follows: = ((NAV₁ - NAV₀) + D₁ + CG₁) / NAV₀ × 100 = ((13 - 12.25) + 1.25 + 1.00) / 12.25 × 100 = 24.49% If all dividends and capital gain are reinvested into additional units at 12.50 per unit the position would be. Total amount reinvested = 2.25 × 300 = 675 Additional units added = 675 / 12.50 = 54 units Value of 354 units as on 31-12-2020 = 4,602 Amount paid for 300 units on 31-12-2019 (300 × ₹ 12.25) = 3,675 Return = (4,602 -3,675) /3,675 = 927 / 3,675 = 25.22%