1. Absolute return: Absolute return refers to the actual return of the fund in a certain period of time. The absolute return is calculated by subtracting the initial net value from the final net value of the fund, dividing it by the initial net value and finally multiplying it by 100%. The formula is as follows:
Absolute income = (net value at the end of the period-net value at the beginning)/net value at the beginning × 100%
2. Relative return: Relative return refers to the performance of the fund relative to a benchmark index in a certain period of time. The calculation method of relative income is to subtract the cumulative net growth rate of the benchmark index from the cumulative net growth rate of the fund, and finally multiply it by 100%. The formula is as follows:
Relative return = (cumulative net growth rate of fund-cumulative net growth rate of benchmark index) × 100%
It should be noted that the calculation method of fund return may be different for different fund types. In addition, the calculation of returns also needs to consider the impact of dividends and taxes.