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

ONHi 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

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

Hi Manish,

plz find below the link.

https://www.fundsindia.com/content/jsp/SchemeDetails/SchemeDetailsOverview.do?intSchemeCode=387

Tarun

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

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

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