Saturday, January 1, 2011

Cost Adjusted Performance

A cost adjusted performance metric is where the costs and expenses of investing in a fund are included as part of return calculation. This then allows better like-for-like comparison with other fund products. For example if a fund produced returns of 12.50% over a year, and charged fees and expenses of 2.50% then the cost adjusted performance would be 10.00%.

Synonyms: Returns net of fees, After fees returns

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