You purchased 1,000 shares of fund ABC for $35.00 NAV per share- You elected the dividend reinvestment plan and had all dividend and capital gains distributions reinvested in additional shares- You just closed your account and sold 1,100 shares for $30 NAV- What was your total return on this investment?

Why Invest in Mutual Funds?
A mutual fund provides diversification through exposure to a multitude of stocks. The reason that owning shares in a mutual fund is recommended over owning a single stock is that an individual stock carries more risk than a mutual fund.