Difference between Trailing Return and Yearly Return

POSTED BY Tarun ON March 4, 2011 11:24 am COMMENTS (5)

Hi Guys,

I am bit confused between the trailing return and yearly return. What is the difference between them. I was checking the ” BSL floating rate fund – Loan term plan growth” on fundsindia.com. and have found that the trailing return for 5years is 9.05% and yearly return for 5years is 45.25%

 

Kindly explain. 

 

Tarun


5 replies on this article “Difference between Trailing Return and Yearly Return”

  1. ashal jauhari says:

    Dear Tarun, As rightly pointed by dear manish, there is a mathematical error in the data but in general the Trailing return indicates the CAGR which comes out around 7.75%, whereas the Cumulative return indicates the gross return as for the given case, 100 Rs. invested @ 5Y ago, is now 145.25 Rs.

    Hope it ‘ll clear your doubt.

    Thanks

    Ashal

  2. 45.25% is exactly 5 times of 9.05% . Seems like we need more details ,can you give a snap shot of that page here ..

    Trailing returns does not look like “CAGR”

    Manish

  3. Hello sir,

    Such a large discrepancy is more likely an error – the five year return is the cumulative (total) return as opposed to annual return. VRO reports the annual return as 7.75% for the last five years.

    http://www.valueresearchonline.com/funds/fundperformance.asp?schemecode=1747

    We will fix the error in our data and inform our market data supplier about the discrepancy.

    thanks,

    Srikanth
    FundsIndia.com

    1. Srikanth

      I think whoever coded it just divided it by 5 to get yearly return instead of using the standard CAGR formula , this is because 9.05% is exactly 1/5th of 45.25% , so I guess its purely a mathematical formula error !

      Thats a actually a very big error for me

      Manish

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