MoneyKraft

1. In measuring portfolio performance, the return number to look out for is

Excess return of portfolio over benchmark, over time

Absolute portfolio return over time

Excess return of portfolio over historical returns

2. A buys a fund at a NAV of Rs.13.24 on 8-Dec-04 and sells it on 27-Aug-05 at a NAV of Rs. 14.75. What is the CAGR of his investment?

0.26%

0.12%

0.16%

3. In a situation where daily values can fluctuate heavily, it is appropriate if we calculate the return as

Simple annualized return

Compounded annualized return

Simple absolute return

4. Which is the best return representation for three-year returns from a debt fund?

Simple absolute return

Simple annualised return

Compounded annual growth rate

5. A fund's mean excess return is 14% and standard deviation of excess return is 8%. The information ratio for the fund is

0.57

1.75

Borrowing against your mf units

can you borrow against your mutual fund units?

You can borrow money against mutual fund units placed under lien with your lender. Watch this investor education video by Moneykraft.

AUTHOR(s):Shreeja Thirani

good video informative and clear one to understand