Ch.11 · Scheme Performance Disclosure Rules · medium
Why should an investor look at a fund's performance across a full market cycle (bull + bear) rather than only during a bull market?
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EXPLANATION
In a rising market, most equity funds generate good returns. A fund manager's true skill is revealed during market downturns — how much the fund protects on the downside (capture ratio). Consistent outperformance across full market cycles is a stronger indicator of genuine skill.
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