Here is a collection of must-see videos that will help you understand the world of mutual funds. Happy Investing!

Financial discipline is similar to going on a diet. It is never easy. There are plenty of temptations - an urge to over spend, letting emotions control your investments and confusion due to the problem of plenty - look at the plethora of options available in the market, with the returns of one scheme trying to beat the other. Who does one turn to for advice? Dependency on one person or your financial advisor alone is also tricky. Which is why people often turn to mutual funds.

The argument here is that experts are taking care of your investments. Depending on your investment appetite and risk appetite, mutual funds come with a good mix of both equity and debt, which helps you earn an interest of 12-15% or more depending on the type of investment schteme you have picked and how the markets have performed overall. Yet, selecting a mutual fund can be confounding due to the raft of choices available.

  • Episode 15
    Volatility
  • Episode 16
    Rolling Returns
  • coming next
    Rolling Returns
  • coming
    Exit Load
  • upcoming
    New Fund Offer
  • upcoming
    Debt Mutual Funds
  • upcoming
    Power of Compounding
  • upcoming
    Know Your Customer
  • upcoming
    Bull Market
  • upcoming
    Bear Market
  • upcoming
    CAGR
  • upcoming
    Absolute Returns
  • upcoming
    Diversified Funds
  • upcoming
    Sector Funds
  • upcoming
    Thematic Funds
  • upcoming
    Equity Linked Saving Schemes
  • upcoming
    Index Funds
  • upcoming
    ETF
  • upcoming
    International Funds
  • upcoming
    Balanced Funds
  • upcoming
    Liquid Funds
  • upcoming
    Fixed Majority Funds
  • upcoming
    Gilt Funds
  • upcoming
    Income Funds
  • upcoming
    Monthly Income Funds

Episode 16 I Intermediary

Rolling Returns

Is Rolling Returns a better way to calculate your earnings?

Rolling Returns is like a daily SIP for a certain interval which takes the average of the series. In other words, it is the average of a series of returns over a given period of time.

Returns can be ‘rolled’ on a weekly and monthly basis as well. It is a more realistic way of looking at your investment returns. If you calculate mutual fund schemes via rolling returns you would get a more accurate and in-depth analysis of a portfolio's performance as returns are calculated each day.

In the long-term, returns tend to absorb the vagaries of the market and give a smooth picture of the fund’s performance. Having said that, if you calculate your returns over a period of time via trailing returns and rolling returns and you find the returns similar, it would simply mean the fund has delivered a consistent performance and the timing of the entry and exit is not too critical. Such schemes can help you consistently create wealth in the long-term. Rolling Returns are more credible if you invest via SIPs over lump sums, however volatile rolling returns are an indication of cautiousness.

Rolling Returns can tell you if the fund has consistently performed or if there is any volatility in the short-term. Point-to-point returns do distort the view as returns on a particular day do depend on many factors and may not give you a complete picture of the fund’s performance. It also erases the impact of timing the market. Rolling Returns help you accurately calculate both positive and negative returns given at a point in time, it can also give you a minimum and maximum return a scheme has given you over a period of time.