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Formula sheet/NISM Series V-A: Mutual Fund Distributors/Risk, Return & Performance of Funds
[ RISK, RETURN & PERFORMANCE OF FUNDS ]

Return Measurement: Simple, Annualized, and CAGR

Simple Return(%)=[(NAVend−NAVstart)/NAVstart]×100\text{Simple Return} (\%) = [ (NAV_{\text{end}} - NAV_{\text{start}}) / NAV_{\text{start}} ] \times 100
Simple Annualized Return=Simple Return×(12/Months)=Simple Return×(365/Days)(for holding<1year)\text{Simple Annualized Return} = \text{Simple Return} \times ( 12 / Months ) = \text{Simple Return} \times ( 365 / Days ) (\text{for holding} < 1 year)
CAGR(Holding>1year)=[(NAVend/NAVstart)1/n]−1CAGR (Holding > 1 year) = [ (NAV_{\text{end}} / NAV_{\text{start}})^{1 / n} ] - 1
Variables

n: Holding period in years (Days / 365).

Exam note

CAGR with dividend payouts assumes notionally that dividends are reinvested at the ex-dividend NAV on each payout date.

Worked examples
CAGR with Dividend (IDCW) Reinvestment Calculation

An investor puts Rs 10,000 in an equity fund at NAV Rs 10.00 on 30th June 2022 (1,000 units). On 1st Jan 2023, the scheme pays Re 1.00/unit dividend (ex-dividend NAV = Rs 12.50). On 1st Jan 2024, it pays another Re 1.00/unit dividend (ex-dividend NAV = Rs 15.00). On 1st Jan 2024, holding is liquidated at Rs 15.00. Investment duration is 1.51 years (551 days). Calculate the final unit count, ending wealth, and CAGR.

Annualized Standard Deviation from Weekly Returns

A fund's weekly returns over 4 consecutive weeks are: +0.50%, +0.80%, +1.30%, and +0.48%. The mean weekly return is 0.77%, and sample weekly standard deviation is calculated as 0.38%. Calculate the annualized volatility (standard deviation) of the scheme.