Multiple choice

The most suitable measure of performance for all fund types is

  1. NAV Change

  2. Total Return

  3. Total Return with reinvestment method

  4. None of the above of fund dividend
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total Return with reinvestment method is the most comprehensive performance measure as it captures both capital appreciation and dividend income reinvested back into the fund. NAV change only tracks price movement, while simple total return doesn't account for the compounding effect of reinvested dividends, making reinvestment method superior for comparing all fund types.

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