Table 1. Determining Your Required Gross Return to Achieve a Net Return Goal
Discount Broker
Management Fees: 0%
Round-Trip Transaction Cost: 1.5%
Portfolio
Turnover
Ratio
(%)
To achieve this net performance return:
1% 5% 6% 7% 8% 9% 10% 11% 12% 15% 20%
Your gross return would have to be:
0 1.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 15.0 20.0
25 1.4 5.4 6.4 7.4 8.4 9.4 10.4 11.4 12.4 15.4 20.4
50 1.8 5.8 6.8 7.8 8.8 9.8 10.8 11.8 12.8 15.8 20.8
75 2.1 6.1 7.1 8.1 9.1 10.1 11.1 12.1 13.1 16.1 21.1
100 2.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 16.5 21.5
150 3.3 7.3 8.3 9.3 10.3 11.3 12.3 13.3 14.3 17.3 22.3
200 4.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 18.0 23.0
Mutual Fund
Management Fees: 1%
Round-Trip Transaction Cost: 1%
Portfolio
Turnover
Ratio
(%)
To achieve this net performance return:
1% 5% 6% 7% 8% 9% 10% 11% 12% 15% 20%
Your gross return would have to be:
0 2.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 16.0 21.0
25 2.3 6.3 7.3 8.3 9.3 10.3 11.3 12.3 13.3 16.3 21.3
50 2.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 16.5 21.5
75 2.8 6.8 7.8 8.8 9.8 10.8 11.8 12.8 13.8 16.8 21.8
100 3.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 17.0 22.0
150 3.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 17.5 22.5
200 4.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 18.0 23.0