Total return is generally regarded as the best measure of fund performance because it is the most comprehensive.  Total return includes dividend and capital gains distributions along with any changes in the fund’s share price.  A dividend distribution comes from the interest and dividends earned by the securities held by a fund; a capital gains distribution represents any net gains resulting from the sale of the securities held by a fund.  Total return, expressed as a percentage of an initial investment in a fund, represents the change in that investment’s value over a given period, assuming any distributions were reinvested in the fund.

Money market funds pay investors a dividend based on the returns or interest earned on the underlying money market securities owned by the fund.  Since their share prices do not fluctuate the way prices of stock and bond funds do, and since they have an average maturity of less than 91 days, a money market fund’s price is often stated in terms of its simple or compounded yield. 

Yield is the measure of net income, dividends and interest less expenses, earned by the securities in the money market fund’s portfolio during a specified period.  Yield is expressed as a percentage of the fund’s NAV, including the highest applicable sales charge if any.  Yield does not include the change, if any, in the investment’s value over a given period.

The interest rate quoted by money market funds is known as the 7 Day SEC Yield.  Yield measures the net income earned by the securities in the fund’s portfolio during a specified period.  Yield is expressed as a percentage of the fund’s NAV.  Yield does not include the change, if any, in the investment’s value over a given period.

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