fund

How are absolute and annualised returns calculated in mutual funds?



Mutual fund schemes often receive heavy marketing when their NAV crosses milestones such as Rs 100, Rs 1,000, or Rs 2,000, drawing investor interest. Some Asset Management Companies (AMCs) promote their schemes by showcasing wealth multiplication over time. However, wealth managers advise investors to distinguish between absolute and annualized returns for a clearer assessment of their portfolios, as reported by ET Bureau.



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