Ch.10 · Risk Measures and Ratios · easy

What does 'since inception' return for a mutual fund scheme tell an investor?

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EXPLANATION

Since inception return is the CAGR from the scheme's launch date to the present. It shows the scheme's long-term track record but must be interpreted carefully — a scheme launched during a market low will show inflated since-inception returns, and vice versa. It should be compared with the benchmark's since-inception return for context.

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