How you get returns from your investment

When you invest in a fund , you put your money to work so it can earn the return you need to achieve your goals. Returns are therefore the reward you receive for investing.

Returns are calculated from the change in the unit price of a fund. Changes in the unit price result from:

1. changes in the value of the assets in the fund, such as a change in the price of a share listed on the Australian Securities Exchange. Any liabilities are deducted from the assets.
2. income received from the assets, such as dividends from shares and interest from debt securities. Any expenses are deducted from the income.

While achieving a return on your money is the reason you invest, the amount you are likely to get is largely unpredictable, particularly over short periods of time. In other words, the returns vary through time.