Glossary Mutual Fund / Term

Absolute Return

Absolute Return refers to the net yield or income that you earn from investing in an asset over a certain time period. It is mentioned as a percentage and takes into account the gains as well as losses.

For example, if you invest Rs. 5,000 in a Mutual Fund today and five years down the line, you receive Rs. 6,000, then the absolute return is 20%.

It is calculated as:
Difference between the (invested amount and current value) / The amount of investment

Permanent link Absolute Return - Creation date 2020-05-23

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