Trailing Returns — Mutual Fund Term Explained

Point-to-point returns calculated from today backwards. The most common return metric but sensitive to start/end dates.

Trailing returns show fund performance from a specific past date to today. 1Y trailing return = what did ₹1 lakh invested exactly 1 year ago become today?

Limitation: heavily influenced by the start and end date chosen. Rolling returns provide a more complete picture.

Related terms

• Rolling Returns — Returns calculated over all possible periods of a given length. Shows consistency of performance rather than cherry-picked point-to-point returns.
• CAGR — Compound Annual Growth Rate. Measures how much a lump sum investment grew per year on average. Not ideal for SIP returns — use XIRR instead.
• XIRR — Extended Internal Rate of Return. The most accurate way to calculate SIP returns — accounts for the exact timing and amount of each cash flow.

Browse the full mutual fund glossary, or see this concept in action in the fund screener.