David Wilkinson
July 18th 03, 07:46 PM
"Robert11" > wrote in message
...
> Hello:
>
> Newbie at all of this.
>
> A bit uncertain regarding some terms that are used in the Fidelity Focus
> magazine, where they
> list returns (or lack of) for their funds. Really looked, but couldn't
find
> anywhere in their literature package
> basic definitions for the following-
>
> a. They have listed, e.g., "Average Annual Total Return for 10 Years" as
> 8.0% for one of their funds
>
> For the increase in value for an initial investment of, say, $1,000, at
> the end of 10 years,
> is it simply:
> 1,000(1.08)^10 ?
>
Almost, but actually 1000((1.08)^10-1) = 1158.9
> b. If the column for "Cumulative Total Return, YTD" lists 5%, this would
> mean that if you
> have, say, $1,000 in it on Jan 1, then "now" it would be worth
> 1,000 + 1,000(0.05) Is this interpretation correct ?
>
Yes
> c. What does NAV mean ?
>
Net Asset Value. This is the total assets of the fund, i.e the total value
of all the shares etc. held plus cash, less any liabilities, divided by the
number of units issued.
> d. What does Turnover ratio mean ?
>
The number of times in the year that the whole portfolio of shares is sold
and others bought.
> e. What does Expense Ratio mean ?
>
Not sure about the definition here, but probably the anual management charge
as a fraction of assets held.
> Much thanks,
> Bob
>
...
> Hello:
>
> Newbie at all of this.
>
> A bit uncertain regarding some terms that are used in the Fidelity Focus
> magazine, where they
> list returns (or lack of) for their funds. Really looked, but couldn't
find
> anywhere in their literature package
> basic definitions for the following-
>
> a. They have listed, e.g., "Average Annual Total Return for 10 Years" as
> 8.0% for one of their funds
>
> For the increase in value for an initial investment of, say, $1,000, at
> the end of 10 years,
> is it simply:
> 1,000(1.08)^10 ?
>
Almost, but actually 1000((1.08)^10-1) = 1158.9
> b. If the column for "Cumulative Total Return, YTD" lists 5%, this would
> mean that if you
> have, say, $1,000 in it on Jan 1, then "now" it would be worth
> 1,000 + 1,000(0.05) Is this interpretation correct ?
>
Yes
> c. What does NAV mean ?
>
Net Asset Value. This is the total assets of the fund, i.e the total value
of all the shares etc. held plus cash, less any liabilities, divided by the
number of units issued.
> d. What does Turnover ratio mean ?
>
The number of times in the year that the whole portfolio of shares is sold
and others bought.
> e. What does Expense Ratio mean ?
>
Not sure about the definition here, but probably the anual management charge
as a fraction of assets held.
> Much thanks,
> Bob
>