Zippo Mutual Fund is one of your best performers- It just announced a year-end distribution of $2.50 per share in capital gains and $4.25 in dividends- Assuming the NAV increased from $31.50 to $43.75, calculate your total annual return.

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.