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Hi everyone,

I have about 30K in "TD CDN Bond Index-e", put there before I knew to go for corporate bonds. I'm considering moving them out (the fund is 70% gov, 30% corp bonds so it's not that good). Before that, a smaller question.

When I logon to TD, I can see the market value and the book value (aka average cost). The Book Value includes the $ I paid plus monthly reinvested dividends. I'm a bit confused on how to track the return of the fund. Should I include these dividends in the cost, so thus simply comparing the Market Value against the Book Value?

TD's web site reads:

"Average Cost" refers to the cost of the investment units currently held in your account (that is, the price you paid for them plus any reinvested distributions), as opposed to the Market Value, which is the value of the investment units at the most recent price. In most cases, you cannot calculate your return from average cost because of the effect of reinvested distributions.

Thanks,
Freddie
 
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