Mutual and other Funds

79. Explain the Mutual Fund's performance measures.

Ans: The key dimension in the evaluation of the performance of a Mutual Fund are: the risk and the rate of return .Every prospectus of a Mutual Fund scheme tells that past performance is not an indicator of future performance . Nevertheless , evaluating the historical portfolio performance helps the investor in several ways . It enables the investor to evaluate the Fund's ability in achieving the desired return while controlling the risk. A comparison with the performance of other Funds or with the BSE National Index can also be made.