Ch.10 · Benchmarks and Performance Evaluation · easy
What is the 'Wealth Ratio' or 'Growth of ₹10,000' metric in mutual fund factsheets?
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EXPLANATION
The 'Growth of ₹10,000' chart (or wealth ratio) shows how a hypothetical ₹10,000 investment at the scheme's inception would have grown over time compared to the benchmark and often a risk-free rate proxy. It visually demonstrates the power of compounding and allows investors to see the absolute wealth created, making performance tangible beyond percentage returns.
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