The **Returns** are simply calculated as:-

= Current invested amount/(Start amount - Amount removed + Amount added)

Whereas, **NAV returns** is calculated assuming no addition/removal of money from the bundle.

**Example**- Let's assume the timeline of your investment in a particular strategy

- Starting Balance - 200

- Strategy executes a trade and generates 10% profit, now the current balance is 220

- Now you add 200 more, hence the current balance is 420

- Again strategy executes another trade of 5% profit, now the final balance is = 441

Total Invested Amount = 200+200 = 400

Current Value = 441

Hence, Returns = (441-400)/400 = 41/400 = 10.25%

**For NAV**, addition removal is not considered and it effectively starts from a 100 balance

- Hence the starting Investment amount = 100

- Strategy executes a trade of 10% profit, now the current balance is 110

- If you add 200 more, this will not make any difference hence the amount remains 110

- Strategy does another trade of 5% profit, now balance = 115.5

Here NAV = 115.5/100 = 15.5%

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