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It is very often said that Mutual Funds have performed badly. Please explain?

April 26, 2017badly explain Mutual funds Performed said

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It is very often said that Mutual Funds have performed badly. Please explain?

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The Funds performance should be evaluated relative the benchmark for the fund. All funds have a benchmark related to the market. The benchmark provides the measure of funds performance. Bad performance by the fund should be underperformance against the benchmark.

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The performance of Mutual Funds is evaluated on the basis of absolute increase or decrease in its Net Asset Value (NAV). However a fund’s performance should be evaluated on the basis of a comparison with the relevant indices and alternative instruments. The NAV varies from fund to fund. Therefore this argument is not entirely true. However some funds have performed poorly with their NAV quoting well below their original IPO price.