The feedback you provide will help us show you more relevant content in the future.

What is the difference between annualised return and absolute return and how to calculate both ?

As it suggests annualized return is returns on an annualized basis while absolute return the the amount of return on your money

Annualized return is calculated in excel using the XIRR function which is also called internal rate of return, but if you calculate XIRR for investments below 365 days it might give you a wrong picture of your investment

Say your investment has grown from 10000 to 10100 in 30 days, if you calculate it using the XIRR function the annualized return will be 12.43%, but actually you have earned just 1 percent, so for investment below a year it is advisable to calculate absolute return

Likewise if your investment has grown from 10000 to 11000 in 500 days, the absolute return will be 10%, but if you calculate it on annualized basis it will 9.09% which is correct

this is the standard practice of Mutual fund industry.

What is annualised return and absolute return with regards to mutual funds?

What is the difference between absolute returns and annualized returns in mutual funds? As a common man investor, how should I understand them…

What is the difference between annualized returns and cagr?

What is the difference between Internal Rate of Return and Return on investment? Can someone explain it in simpler terms?

What is annualised return and absolute return with regards to mutual funds?

What is the difference between absolute returns and annualized returns in mutual funds? As a common man investor, how should I understand them…

What is the difference between annualized returns and cagr?

What is the difference between Internal Rate of Return and Return on investment? Can someone explain it in simpler terms?

What is the difference between weighted average absolute return and overall return in a mutual fund portfolio?

What is possible return and how can I calculate it?

Whats the difference between a one-time return and annual return filing?

What is the difference between excess return and extreme return?

What are the differences between risk and return in points?

What is the difference between CAGR and the Individual Rate of Return?

What is annualised return and absolute return with regards to mutual funds?

What is the difference between absolute returns and annualized returns in mutual funds? As a common man investor, how should I understand them…

What is the difference between annualized returns and cagr?

What is the difference between Internal Rate of Return and Return on investment? Can someone explain it in simpler terms?