Use this automated mutual fund rolling returns calculator to evaluate the consistency in performance of a mutual fund over any interval from April 3rd 2006 onward. You can compare results with benchmarks like Sensex, CNX Nifty, CNX Small-cap, and CNX Mid-Cap.
The difference between annual yield and annual interest and how it can be used to misrepresent gains from fixed deposits is discussed.
Let us face it, most investors are confused with the two percentages associated with a fixed deposit: annual interest and annual yield. Most people make the common mistake of assuming that the yield (often higher than the interest rate) isthe interest rate!
So let us try to understand what each term represents.
If I invest Rs. 100 in a FD that offer 10% per year, my investment will grow to
Rs. 110 at the end of 1 year
Rs. 121 at the end of 2 years
Rs. 133.1 at the end of 3 years.
If I want to represent this growth by a constant percentage, then I use the annual interest rate.read more