Here's how to choose the best mutual fund for your portfolio
Updated : October 30, 2018 01:04 PM IST
At a basic level, the return that a fund gives over a given period is just the percentage difference between the starting Net Asset Value (price of a unit of a fund) and the ending Net Asset Value.
Returns by themselves don't serve much purpose. The purpose of calculating returns is to make a comparison. Either between different funds or time periods.
How well a fund faces economic headwinds is critical. Rates of return since launch and comparison with funds that had to face bad markets is unfair. If a fund has proved its mettle in a bear market, then the fund and its managers deserve a thumbs up.
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morning
YOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more