News From Press Why mutual funds’ point-to-point returns are misleading

Why mutual funds’ point-to-point returns are misleading

Source: ET Dec 16, 2017

The 1-year returns of funds today can paint a very bright picture of performance. A chart-topping small-cap fund, for example, today sports a one-year return number in excess of 50 per cent.

Even a sedate large-cap fund seems like it is a good one with a 30 per cent-plus return. But these figures change very quickly and going by the 1-, 3-, and 5-year returns can be misleading.

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1 Comment

Prashant · 6 years ago `

This is precisely the reason why direct plans are malicious in nature. Also SEBI discouraging IFAs and forcing us to become RIAs so wants to get retail participation out of the market so only big players can make money. Also direct plans do not make money for investors which is proven by various studies. Shame shame shame

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