Written by the Bini team · Last updated: October 2026
A mutual fund return is the change in value over a period, shown as a percentage. There are two kinds. The fund's return comes from NAV alone and your own return depends on how much you invested and when. The two usually differ.
The simple return formula
Divide your gain by the amount you invested. If you invest ৳ 100,000 and it grows to ৳ 110,000 you have gained ৳ 10,000 which is a 10% return.
How NAV drives your return
When you buy units at one NAV and sell at a higher NAV, the difference is your gain.
- You buy 10,000 units at a NAV of ৳ 10 so you invest ৳ 100,000.
- Later the NAV is ৳ 11.
- Your units are now worth ৳ 110,000.
- Your gain is ৳ 10,000 or 10%.
What if the fund pays a dividend?
A dividend adds to your return on top of the NAV change. Say the NAV rises from ৳ 10 to ৳ 11 and the fund also pays ৳ 0.50 per unit. You earned ৳ 1.50 on every ৳ 10 invested which is a 15% return. NAV alone would have shown only 10%.
How a fund's return is calculated
The return you see on a fund page is based purely on NAV. It is a time-weighted return: It measures how the portfolio performed over the period and ignores when investors put money in or took it out.
It also assumes any dividend is reinvested in the fund. This is the global standard for measuring a fund's performance and it lets you compare funds on equal terms.
Because it comes only from NAV it doesn't depend on how many units you bought or on the day you bought them. NAV is calculated after all expenses so the return you see is net of all expenses.
How your own return is calculated
Your own return is about your own money. It depends on how much you invested and at what point. On Bini you see it in two ways.
- Absolute return is how much you have gained or lost as a percentage of the money you put in.
- Annualized Return (XIRR) is the same result shown as a yearly rate. It takes into account the date of every payment you made so it suits a SIP.
Each one comes in two versions:
- Active looks only at the units you still hold. Units you have fully sold are left out.
- Lifetime looks at everything you have ever invested in the fund. It includes the money you received from units you sold.
Reinvested dividends need no special step. The extra units they buy are already part of your current market value. You can see the full working in this Active and Lifetime calculation sheet (opens in a new tab).
Why your return differs from the fund's return
A fund's return is built from NAV alone. Yours is built from your entry point and how much you invested at each point. Take a fund whose NAV goes from ৳ 10 in January to ৳ 12 in June and ৳ 11 in December. Two investors each put in ৳ 10,000.
| Investor A | Investor B | |
|---|---|---|
| Invested in | January at ৳ 10 | June at ৳ 12 |
| Worth in December at ৳ 11 | ৳ 11,000 | ৳ 9,167 |
| Own return | +10% | −8.3% |
The fund's return for the year is +10% because its NAV rose from ৳ 10 to ৳ 11. Investor A earned exactly that. Investor B bought after the NAV had already climbed and lost money in the same fund.
Total return vs Annualized Return
Total return is the change over the whole period. Annualized Return converts that into a yearly rate so you can compare investments held for different lengths of time.
For example, ৳ 100,000 growing to ৳ 121,000 over two years is a 21% total return. That works out to about 10% a year.
Why SIP returns are harder to calculate
With a SIP you buy units at different prices on different dates. A single start-to-end percentage doesn't capture that. Your result depends on:
- How much you invested each month
- The NAV on each investment date
- How many units you bought in total
- The current NAV
- How long you stayed invested
This is why Bini uses Annualized Return (XIRR) for your own return. It accounts for the timing of each payment.
What about fees and costs?
The returns you see on Bini are net of all expenses. Management fees and other charges are already deducted from NAV so there is nothing more to subtract. The exit load is different. It is a charge on selling early rather than a fund expense so it is not part of the return you see. Learn more in how mutual funds work.
What about past performance?
Past returns show what happened. They don't tell you what will happen next. A fund that did well in a strong market year may do poorly in a weak one. Look at performance over several years and compare it with funds that have a similar strategy.
Frequently asked questions
How do I calculate my mutual fund return?
Divide your gain by the amount you invested. If you invested on several dates such as with a SIP then Bini uses Annualized Return (XIRR), which accounts for the date of each investment.
Why is my return different from the fund's return?
The fund's return comes purely from NAV and does not depend on how many units you buy. Your own return depends on the NAV at your entry point and on how much you invested at each point.
What is Annualized Return (XIRR)?
Annualized Return (XIRR) is a yearly rate that takes the date of every payment into account. It suits a SIP because the money goes in on different dates.
What is the difference between active and lifetime Annualized Return?
Active looks only at the units you still hold. Lifetime also includes the units you have sold and the money you received from them.
Are the returns shown on Bini net of expenses?
Yes. They are net of all expenses because NAV is calculated after management fees and other charges are deducted. An exit load is not included since it applies only if you sell within a set period.
What is a good mutual fund return?
It depends on the fund type, the market and the time period. A good income fund can give around 9% to 11% annualized return. A growth fund held for 10 years or more may give 12% or more annualized return. These are not guarantees. Compare a fund with similar funds and with your own goal, not with a single number.
Are mutual fund returns guaranteed?
No. Returns depend on how the fund's investments perform.
What is the difference between absolute and Annualized Return?
Absolute (total) return is the overall change. Annualized Return expresses it per year so you can compare different time periods.