Mutual Fund performance is assessed based on its returns or performance, and the two most important performance metrics used in evaluating Mutual Funds are:
(a) Trailing Returns
(b) Rolling Returns
So, let us now understand the concepts behind the two widely used methods for calculating returns in mutual funds and uncover the differences between them. The scheme returns so calculated when compared to its respective benchmark would reflect either out-performance or under performance by the scheme.
Trailing Returns:
Trailing Returns in mutual funds are a way to measure how a fund has performed between two specific dates. Trailing Returns are also commonly referred to as "point-to-point" returns. They offer a brief overview of the fund's performance at a given point in time and can be computed over different time frames, including year-to-date (YTD), one year,
