Mutual fund returns shown by investment platforms and newspapers mislead you.

Why should you think twice?

[A thread] 🧵

“XXX mutual fund has delivered astounding returns of 80% in the last one year.”

You may have read thousands of such headlines and claims online.

They tell you only half the story.
Mostly, investment platforms and newspapers report trailing returns.

To calculate trailing returns, you have to pick a mutual fund’s NAV from two specific dates.

And calculate how much the NAV has increased during the period.
Example:

NAV of ‘ABC’ fund on 1st Oct 18 = INR 100
NAV of ‘ABC’ fund on 30th Sept 21 = INR 175

3-year CAGR = 20.51%
But there’s a problem with trailing returns.

You have to calculate it point to point.

If you change the dates, the returns may fluctuate.
In the previous example, you will get 20.51% returns only if you enter on 1st Oct 18 and exit the fund on 30th Sep 21.

Trailing returns depend heavily on specific dates.
Instead, you should calculate rolling returns.

Here you calculate returns over a fixed period based on different start dates.

Then average all those returns to find out the rolling returns.
Let’s assume that you have to calculate 3-year rolling returns for a fund from 2010 to 2020.

Returns are rolled every month.
You’ll have to calculate trailing returns as follows:

1st Jan 2007 to 1st Jan 2010
1st Feb 2007 to 1st Feb 2010
1st March 2007 to 1st March 2010 and so on...till 1st Jan 2017 to 1st Jan 2020.
After calculating trailing returns for all the periods, you can then calculate:

• MAX,
• MIN
• Average rolling returns.

It shows a clear picture of a fund’s performance.
You don’t have to calculate rolling returns manually.

Many research websites do this job for you.

You can find out every fund’s rolling returns with Google search.
Recap: Don’t trust trailing returns publicised by investment platforms.

Always check rolling returns to evaluate a mutual fund’s performance before investing.
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#ஆதித்தியஹ்ருதயம் ஸ்தோத்திரம்
இது சூரிய குலத்தில் உதித்த இராமபிரானுக்கு தமிழ் முனிவர் அகத்தியர் உபதேசித்ததாக வால்மீகி இராமாயணத்தில் வருகிறது. ஆதித்ய ஹ்ருதயத்தைத் தினமும் ஓதினால் பெரும் பயன் பெறலாம் என மகான்களும் ஞானிகளும் காலம் காலமாகக் கூறி வருகின்றனர். ராம-ராவண யுத்தத்தை


தேவர்களுடன் சேர்ந்து பார்க்க வந்திருந்த அகத்தியர், அப்போது போரினால் களைத்து, கவலையுடன் காணப்பட்ட ராமபிரானை அணுகி, மனிதர்களிலேயே சிறந்தவனான ராமா போரில் எந்த மந்திரத்தைப் பாராயணம் செய்தால் எல்லா பகைவர்களையும் வெல்ல முடியுமோ அந்த ரகசிய மந்திரத்தை, வேதத்தில் சொல்லப்பட்டுள்ளதை உனக்கு

நான் உபதேசிக்கிறேன், கேள் என்று கூறி உபதேசித்தார். முதல் இரு சுலோகங்கள் சூழ்நிலையை விவரிக்கின்றன. மூன்றாவது சுலோகம் அகத்தியர் இராமபிரானை விளித்துக் கூறுவதாக அமைந்திருக்கிறது. நான்காவது சுலோகம் முதல் முப்பதாம் சுலோகம் வரை ஆதித்ய ஹ்ருதயம் என்னும் நூல். முப்பத்தி ஒன்றாம் சுலோகம்

இந்தத் துதியால் மகிழ்ந்த சூரியன் இராமனை வாழ்த்துவதைக் கூறுவதாக அமைந்திருக்கிறது.
ஐந்தாவது ஸ்லோகம்:
ஸர்வ மங்கள் மாங்கல்யம் ஸர்வ பாப ப்ரநாசனம்
சிந்தா சோக ப்ரசமனம் ஆயுர் வர்த்தனம் உத்தமம்
பொருள்: இந்த அதித்ய ஹ்ருதயம் என்ற துதி மங்களங்களில் சிறந்தது, பாவங்களையும் கவலைகளையும்


குழப்பங்களையும் நீக்குவது, வாழ்நாளை நீட்டிப்பது, மிகவும் சிறந்தது. இதயத்தில் வசிக்கும் பகவானுடைய அனுக்ரகத்தை அளிப்பதாகும்.
முழு ஸ்லோக லிங்க் பொருளுடன் இங்கே உள்ளது
https://t.co/Q3qm1TfPmk
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்

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