Friday, June 30, 2017

Estimation of Debt Fund Returns…

“Kitna return milega?” This is a very common question majority of investment advisers and distributors of investment products face. Very regularly. Many simply look at the historical numbers and gave some projections based on the past. Some others stick to various thumb rules, e.g. equity returns = GDP growth plus inflation. In the case of fixed income mutual funds, many assume that the fund should return net YTM to the investors (Net YTM = YTM – fund expenses)...

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