Return represents a fund's equity change due to trading activity from inception to present. It's calculated as a time-weighted rate of return, which evaluates the Fund Manager's performance while eliminating distortions caused by deposits and withdrawals.
How Return is Calculated
Balance operations like deposits, withdrawals, and internal transfers divide the entire period into sub-periods. The return rate for each period is calculated and multiplied to produce the final percentage. When a Fund Manager makes deposits or withdrawals, these don't influence the return calculation, preventing artificial results.
Note: Return continuously updates and compounds over time.
Investment Return Drift
Investors may notice differences between the fund's overall return and their individual investment return. This occurs because the timing of when you join a fund affects your investment performance. This drift can work either in your favor or against you.
For example, if you invest during a fund drawdown period, even a small subsequent increase in the fund's return could result in a significantly higher return on your specific investment.