InvestorQ : What is rolling returns analysis for the mutual fund schemes?
Anushri Vasa made post

What is rolling returns analysis for the mutual fund schemes?

Answer
image
Nitin Shah answered.
4 months ago
Follow
Rolling return is the annualized average return for the selected period beginning at given start date and advancing one day sequentially till the last available date. This method provides a more accurate and in-depth picture of a portfolio's performance as the return is calculated every day for the period under observation rather than being dependent on any specific time frame. Rolling Returns are more time dynamic and sensitive. They focus on delivering a transparent picture of the returns accrued irrespective of the time of entry and time of exit in a scheme. The calculation of Rolling Returns is carried out in two ways:

  1. Deciding the overall time period of calculation of returns
  2. Finalizing the intervals on which the returns would be considered
These two ways are directly linked to each other. The intervals are finalized depending upon the time period for which you want to evaluate the returns.
6 Views