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Finance Dictionary and Glossary of Investment Terms
The total return of the mutual fund divided by the number of years used in the calculation. For mutual funds, total return assumes reinvestment of all income and capital-gains distributions during the period. Total return is calculated by figuring the change in net asset value over time and then dividing by the NAV at the start of the period. Total return does not take account of sales charges or for redemption fees but the figure does take account of management, administrative, 12b-1 fees, and other costs automatically deducted from fund assets.