In reaction to this apparent investor ignorance, and perhaps for other reasons, the SEC made further rule-making to require mutual funds to publish in their annual prospectus, among other things, total returns before and after the impact of U. The annualized return annual percentage yield, compound interest is higher than for simple interest, because the interest is reinvested as capital and then itself earns interest. Essentially a long-term weighted average of historical results, expected returns are not guaranteed. The account uses compound interest, meaning the account balance is cumulative, including interest previously reinvested and credited to the account. The order in which the loss and gain occurs does not affect the result.