Costs, Returns & Comparing Funds
Lesson 3 of 5 in Mutual Funds & SIP Mastery · 10 min read
Past returns are the most visible number and often the most misleading.
Point-to-point vs rolling returns
A 3-year return measured on one date can look very different a month later. Rolling returns show how consistently a fund has performed across many periods.
Expense ratio
A 1% difference in annual costs can reduce the final value of a long-term investment noticeably. Use our Mutual Fund Returns calculator to see the effect.
Benchmark and category comparison
A good comparison asks: did the fund beat its benchmark index and its category peers, after costs, over several periods?
Risk measures
Standard deviation, downside capture and maximum drawdown help you understand how bumpy the ride was.
Exit load and taxes
Check the exit load and the tax treatment for your holding period before investing.
Key takeaways
- Look at rolling returns, not just one period
- Expense ratio compounds over time
- Compare a fund with its benchmark and category