Mutual Funds returns are calculated by computing appreciation in the value of your investment over a period as compared to initial investment made. Investors can earn returns through mutual funds in three ways: 1. Income from stock dividends -Income can be earned in the form of dividends from the shares and interest on bonds included in the investor's portfolio. Investor either can retain or invest the dividend received by him. 2. Capital Gain from securities sell- Mutual fund can earn capital gain from the securities sell by the fund manager and they pass on this profit to the investors of the respective schemes. 3. Capital Gain in the value of scheme -Capital Gain is earned by the investors if the value of the scheme increased from the cost of investment. One should avoid the temptation to review the fund's performance each time the market falls or jumps up significantly. For an actively-managed equity scheme, one must have patience and allow reasonable time - between 18 and...