Ch.10 · Benchmarks and Performance Evaluation · easy

What is 'absolute return' in mutual fund performance measurement?

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EXPLANATION

Absolute return is the total gain or loss on an investment over a specific period, expressed as a percentage of the original investment, without annualising. For example, if you invest ₹10,000 and it grows to ₹12,500 over 2 years, the absolute return is 25%. For periods over 1 year, CAGR is a more meaningful measure.

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