Annual vs Trailing vs Rolling Returns Explained | ET Money

Whenever we invest in financial products like stocks, gold, bonds, or mutual funds, we often start by looking at the past returns. To look into this, there are three main types of returns to consider: Annual Returns, Trailing Returns, and Rolling Returns.
- Annual Returns: This shows the percentage profit/loss over one year. For example, if a mutual fund's NAV was 60 rupees on December 31, 2020, and 100 rupees on December 31, 2021, the annual return would be 66.6%. Annual returns help gauge performance consistency.
- Trailing Returns: These measure the average annual return between two dates, providing a broader picture of performance than just annual returns.
- Rolling Returns: These calculate returns for a specific period continuously, offering a more comprehensive view. They show a range of returns and help understand performance over overlapping cycles.
In summary, each return type serves different purposes. While annual and rolling returns help assess consistency or volatility, trailing returns highlight the compounding effect. Consider all three when making investment decisions.
#AnnualReturns #RollingReturns #TrailingReturns #MutualFundReturns
📖 CHAPTERS
00:00 Introduction
01:11 Annual Returns
04:24 Trailing Returns
07:04 Rolling Returns
11:29 Summary
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[@sachin_2601]

Definitely an informative video. I also got to know recently that Rolling Returns is a good measure to track the performance of a fund and you have explained it in the layman terms. Thanks for the great content 👌👍🏻

[@ETMONEY]

Glad it was helpful! Thank you, Sachin KN

[@neerajrathee6940]

Understood.
Very nicely explained.
Thankyou

[@vijendersingh7385]

Hi Shankar Nath , I have been looking to find a detailed video over the expenses differences when choosing between genius stock or mutual fund vs other normal mutual funds . Can you please make a detailed exampled video so as to get a clarification how would one get charged when choosing between two .

[@WryReaper]

Crisp and concise

[@Vighnesh92]

Thank you ET Money

[@mudassar1]

I only knew about Trailing *Twelve* Months (TTM). I thought Annual Return & Rolling Return is same and the word Rolling Return is used because it's more attractive 😅.
This was something that most people wouldn't search.
Thanks alot.

[@ETMONEY]

Most welcome. Glad the content was helpful

[@Anthhaa]

As always, great explanation. Trailing return gives compounding benifit, does roling return has compounding in long term?

[@sudhirbhimani]

You are very good at explaining. very good video. I have now subscribed to your channel. Well explained. I can to compare the rolling returns of 1, 2 and 3 years of mutual funds which I have in my portfolio. Would you please advise me best 3~4 mutual fund websites where I can compare Rolling returns easily?

[@jayadevtn1987]

So much informative videos.. thanks for always being so consistent on information.

[@ETMONEY]

Most welcome. Glad you liked it

[@arshaqchemmala5840]

Please provide option to show MF Rolling Return medians for different periods on ET Money app.

[@baskarchockalingam2421]

Valueable source👍

[@RaviGupta-hq1pg]

Is it worth to continue sip in Axis Bluechip fund. It is more than three year I have invested through sip but last three year performance is not well at all.

[@EvilSapphireR]

Basically annual return is just a specific case of rolling return with the time period for rolling return calculation being one year.

[@ramyasri6093]

Very well explained...as always

[@ETMONEY]

Thanks a ton. Glad you liked it

[@baskarm4636]

Sir, is axis mutual fund safe to invest newly now

[@TusharKarmokar99]

So this alpha is not on a rolling basis right? So then how it is actually comparable. I think in most of the websites how the alpha, beta, sharpe, sortino, treynor are calculated? Is it on a rolling return basis or how?? Coz i have checked on websites like advisorkhoj, money control, et, value research and tickertape.. All the values ared different? So how should we read the risk ratios?

[@shivakumarmath]

Crystal clear information and well explained.
By reading a book or an article wouldn't give such deeper focus to understand.
Shankar always score 101 🤗😊

[@ETMONEY]

Thanks for your kind appreciation, Shivakumar

[@prakashraghunathan2685]

Thank you Sankar sir for the good information.I think it will be useful for me.

[@ETMONEY]

Most welcome. Thanks for liking

[@shivaprrasadsk3060]

How to download genius portfolio table for any fund. Is there any app

[@dheerajkukal8475]

Just brilliant

[@ETMONEY]

Thanks!

[@sujitsingh9296]

so cagr and trailing returns are same?

[@santumondal2251]

Is sip in equity mutual fund like paying lic endowment policy premium monthly that will mature after 20/30 years?

[@ETMONEY]

No. The most glaring difference is that one is stock market linked while the other is not

[@souravhait8488]

If i invest in axis small cap for 20 year sip
Is it good choice ?
Is it better return to uti nifty 50 fund ?
I need 17-18 % return for 20 yaer

[@vijaybilsore3489]

Good choice

[@gprocky2010]

Very well explained. Which return is better for debt mf comparison ?

[@ETMONEY]

Thank you. In our opinion .. for debt funds, a return comparison is secondary. A risk comparison is more important. We have a couple of good videos on debt funds which'll solve this quandry better. Pls watch: ua-cam.com/video/0I68yyBwcno/v-deo.html and ua-cam.com/video/1BTke9iLuYg/v-deo.html

[@Hariprasad-ky1bt]

*PLEASE REPLY*
Which type of mutual funds are best in this situation large vs mid vs small vs debt. I would like to invest for min 7 years.
Thank you.

[@priyadharshinijeyaveeran3661]

Is the returns showcased for Genius High Growth portfolio achieved either by rebalancing daily or monthly according to the Genius asset allocation strategy?

[@ETMONEY]

Hi. Its calculated as monthly rebalancing on the 1st of every month

[@VGAKarnataka]

Thanks a lot Shankarnath Sir. Inspite of lower turn over ratio and high conviction shares in the ABSL Tax Relief 96 fund managed by one of the best investment manager Mr.Ajay Garg failed to compete in the ELSS category, make a detailed video on this...

[@RaviSingh-dp4ju]

You have shown rolling return of nifty 500, for investment period of 15years. But you have not mentioned the rolling period i.e. is it one years rolling return (calculated year to year basis) for a span 15 years or 5 years rolling return (calculated at five years interval basis) for a span of 15 years ?

[@nbkmpat]

You guys have the worst payment gateway never gets the NAV of the same day even if someone invests before the stipulated time.

[@pradeepkulkarni3101]

I have become a genius member today, but when I tried to invest in stock+Etf , I am getting higher amount, and payment fails. Now I don't understand how to start initial transaction. You don't have contact number also. I am confused.😮 Please help.