VOLUME - 6, ISSUE – 2, JULY.TO DEC,2020 ISSN NO. : 2455-4642 (ONLINE)
IDEES –International Multidisciplinary Research Journal
(Peer Reviewed)
A Research Paper
on
Trailing Return V/s Rolling Return of Selected Large-cap Funds in India
By
Prof. Mitali A. Badami
Evening Commerce College, VNSGU, Surat.
Abstract
It is always better to invest in mutual funds for a common investors lacking knowledge or
time to invest directly in equity shares. It offers relatively better returns at reduced risk.
Moreover during the current time of bleak economic scenario caused by Covid-19 pandemic,
it is better to invest in relatively safer mutual funds having high growth opportunities at
minimum risk. Large cap funds are the funds that possess both the characteristics. All the
fund houses highlight high returns and try to attract the investors. It is essential to understand
these returns and take correct investment decision. Returns can be trailing return or rolling
return. Trailing returns are also called point-to-point return which shows return of the period
starting and ending on a particular date. This cannot be considered as authentic base for
investment decision. Hence the paper evaluates trailing and rolling returns of large cap funds
those are considered the best by The Economic Times to invest in 2020
.5-Yearly Trailing
Return and 5-Yearly Rolling Returns rolled quarterly on basis Net Asset Values of these
funds from July 1, 2013 till June 30, 2020 are calculated and compared. This will help
investors to understand the returns published by the funds houses in the better way and take
better investment decision.
Introduction
Mutual fund is one of the best investment avenues available for a common investor. It
collects funds from various people having common objective and invest them into various
securities depending on the objective of the fund. There are various types of mutual funds.
Equity funds are the funds wherein the collected corpus is invested in equity shares of
companies. They have highest possibilities of growth than other types of mutual funds.
Depending on the size of market capitalisation, equity funds are further classified into large
cap, mid cap and equity diversified mutual funds. Large cap funds invest in companies with
large market capitalisation which are time tested companies with proven stability. Hence the
https://economictimes.indiatimes.com/mf/analysis/best-large-cap-mutual-funds-to-invest-in-2020/articleshow/73066984.cms
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