Ever wonder if your ₹10 lakh investment is *really* performing well? Let's demystify mutual fund returns and give you clarity on your hard-earned money.
Absolute Return is a simple snapshot of profit. For periods >1 year, CAGR (Compounded Annual Growth Rate) gives you a true, annualized return. It’s the consistent year-on-year growth rate.
For SIPs or multiple transactions, XIRR (Extended Internal Rate of Return) is your superpower. It factors in exact investment dates for the most accurate annualized return. A must for regular investors!
Your reported returns aren't final. Expense ratios (annual fees), exit loads (for early redemption), and taxes (STCG/LTCG) all chip away at your actual take-home gains. Always factor them in!
Don't chase past returns, compare unrelated funds, or ignore inflation. Focus on annualized returns, not short-term fluctuations. Align investments with your long-term financial goals.
Good returns beat inflation and the fund's benchmark. For equity, 12-15% CAGR over 7-10 years is often good. Future returns aren't guaranteed, but 10-12% is used for long-term planning.
Ready to visualize your wealth growth? Use our SIP calculator to explore scenarios and build confidence in your financial journey. Start crunching numbers and take charge!