Easy Method To Calculate The Annual Interest On Your GNAT Mutual Fund Contributions

The easy method of calculating annual interest used personal downloaded mutual fund statements for 2020 and 2021. The two statements are thus attached.

This easy method is also applicable to any mutual fund scheme that refuses to disclose its annual interest gained.

Teaser 1: You have the opportunity to look into someone’s Mutual Fund statement covering seven (7) years.

Teaser 2: Can you tell me the annual interest GNAT mutual fund gives you on your mutual fund contributions?

Only a negligible number of GNAT Mutual Fund members are able to tell the actual annual interest given them annually.

Ordinary GNAT members and any other mutual fund member also now have the opportunity to calculate the annual interest gained using this simple and easy method of calculating the annual interest for a financial year.

Every financial institution is able to determine how much profit they make every year and even publish it in the national media, but that information is hard to receive from GNAT Mutual Fund by members. It is for this reason a volunteer decided to use his personal statements for 2020 and 2021 to illustrate how the annual interest on GNAT Mutual Fund contributions can be found.

Individuals need only two (2) figures from their latest statement and one (1) figure from your previous statement to perform this simple calculation.

What you need to calculate the annual interest

A. To calculate your annual interest, you need annual statements for two different years. That is

a. the statement for the latest year which you want to calculate the interest for (in this calculation, it is 2021)

b. The statement for the previous year (in this calculation, it is 2020)

B. The figures or amount needed from each statement for the calculation are;

a. For the latest statement (2021)

I). Total Fund Value which is Ghc8,405.96

II). The total contribution for the latest year alone, which is from January to December. That is Ghc150 x 12 = Ghc1800

b. For the previous statement (2020)

I). Total Fund Value, which is Ghc5924.57

C. To determine the annual interest gained for the latest year, subtract both the total fund value for the previous year and the total contributions of the latest year from the total fund value of the latest year. That is

Interest = 8405.96 – 5924.57 – 1800

Interest = Ghc681.39

Therefore, the interest generated for the year 2021 for this Mutual Fund member is Ghc681.39

D. The interest per cent for the year 2021 = (681.39 √∑ 5924.57) x 100%

Interest per cent = 11.50%

The percentage of interest gained for the year 2021 by the contributor, therefore, is 11.50%.

Everyone can, therefore, try to find the interest generated for them during the past years and going forward.

Note that, this calculation is based on the assumption that the mutual fund contributions for the particular year did not generate any interest. However, when the possible interest that the year’s contribution is factored into the calculation, the interest percent could drop by 1%. To avoid any complications of calculation, that aspect of interest is overlooked. In other words, the interest percent obtained by this calculation could reduce by about one percentage point (1%)

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