Mutual fund returns

General
1

Hi,

I cant seem to properly understand Absolute/Annualized/CAGR concept. I am still confused.

To put things simply I must consider CAGR of a fund than the Absolute/Annualized returns?

also If I want to know total amount I would have earned after X amount of years then I must use Absolute return right?

Thanks

2

If you are looking at the performance of a fund for a period less than a year, then you should look for Absolute return.

If you are look at the returns for over many years (on a lumpsum investment) then look at CAGR.

For returns on SIP, look at XIRR returns.

Check section 6.7 here - http://zerodha.com/varsity/chapter/the-stock-markets/ to figure out how to calculate returns.

3

could anyone please help?