Experts’ take on difference between investor and fund returns

In this episode of ‘Mutual Fund Corner’, Kaustubh Belapurkar of Morningstar Investment Adviser will talk about investor returns and difference between investor and fund returns.

Belapurkar said, “Investor return is basically what you would call a rupee averaged return or what an average investor holding a fund would have made. Typically what we see is investor return will be lower and sometimes dramatically lower than the fund returns.”

“The experience for one investor to the other will be very different, unless and until obviously investor has been holding that fund for the entire period for which we are considering the performance, which we know that only happens with a certain segment of investors and does not happen for all and that is where the challenge or the gap is we call it behavioural gap comes in between the fund return and the investor return.”