The simple net rate of return is the net rate of return of funds without considering the impact of dividend reinvestment. The calculation formula is: where, NVAt represents the net value of fund shares at the beginning, NVAT represents the net value of fund shares at the end, and D represents the dividend amount of each fund during the inspection period.

For example, if the net share value of a fund on T day is 1 yuan, the net share value on T day is 1. 1 yuan, and 2.5 yuan is distributed every 10 on M day, the simple rate of return of the fund at this stage is: time-weighted rate of return.

The assumption of time-weighted rate of return is that when the fund pays dividends, investors do not withdraw cash from dividends, but exchange dividends for fund shares and reinvest immediately. Calculate the segmented income before dividends, and multiply the segmented income to get the time-weighted income.

Extended data:

Features:

The operation mode of private equity fund is equity investment, that is, through capital increase and share expansion or share transfer, the shares of unlisted companies are obtained, and profits are made through share value-added transfer. The characteristics of equity investment include:

1, the return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.

2. Equity investment is accompanied by high risks. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.

Baidu encyclopedia-private equity fund