Rolling returns are a crucial metric for evaluating the performance of mutual funds as they provide a more comprehensive and accurate picture compared to traditional point-to-point returns. They help investors understand how a fund has performed over various time periods and under different market conditions. Here, we will explore in detail the different sources and methods to check the rolling returns of mutual funds.
Financial Data Providers and Aggregators
Morningstar: Morningstar is a well-known and highly respected financial data and research firm. It offers an extensive database of mutual fund information, including rolling returns. On the Morningstar website, investors can search for a specific mutual fund by its name or ticker symbol. Once the fund is selected, a detailed page is presented that contains a wealth of data. The rolling returns section typically shows returns over different time frames, such as 1-year, 3-year, 5-year, and 10-year rolling periods. The data is presented in both graphical and tabular formats, making it easy to visualize and compare. For example, the graph might display the rolling 3-year returns of a fund over the past decade, allowing investors to see how the fund has fared during different market cycles. Morningstar also provides additional analytics, such as how the fund’s rolling returns compare to its category average and relevant benchmarks. This helps investors assess the fund’s relative performance and its ability to outperform or underperform its peers.
Value Research: Value Research is another popular platform, especially in the Indian context, that offers comprehensive mutual fund analysis. It provides detailed reports on individual funds, and the rolling returns data is a significant part of this analysis. The platform calculates rolling returns over various durations and presents them in a clear and organized manner. Value Research also offers insights into the consistency of a fund’s performance based on its rolling return patterns. For instance, if a fund has consistently high rolling returns over multiple consecutive periods, it indicates a more stable and reliable performance. Additionally, the platform may provide comparisons of a fund’s rolling returns with other funds in the same category, enabling investors to make more informed decisions when choosing between different investment options.
Asset Management Company (AMC) Websites
Most AMCs: Many asset management companies understand the importance of providing investors with detailed performance metrics, including rolling returns. On their official websites, under the section dedicated to the specific mutual fund, investors can often find performance data that includes rolling returns. For example, a large AMC like Fidelity might have a page for each of its funds where it presents historical performance figures. The rolling returns data is usually accompanied by explanations and footnotes to help investors understand how the calculations were made. Some AMCs may also provide interactive tools or charts that allow investors to customize the rolling return period and see the impact on the fund’s performance. This can be particularly useful for investors who want to analyze how a fund has performed during specific market events or time intervals that are of particular interest to them.
Research and Analysis Sections: AMCs often have research and analysis sections on their websites that go beyond just presenting the numbers. They may include articles or whitepapers that discuss the significance of rolling returns and how they should be interpreted in the context of the fund’s investment strategy. For instance, an AMC might explain how its fund’s rolling returns have been affected by changes in interest rates, market volatility, or the performance of specific sectors in which the fund invests. This additional context can be invaluable for investors as it helps them gain a deeper understanding of the fund’s behavior and its potential future performance.
Online Brokerage Platforms
Full-Service Brokers: Full-service brokerage firms like Merrill Lynch or Morgan Stanley offer their clients access to a wide range of investment research tools, including the ability to check rolling returns of mutual funds. These platforms typically provide a consolidated view of an investor’s portfolio, and within the research section, investors can drill down into the performance details of individual mutual funds. The rolling returns data is presented in a format that is integrated with other portfolio analytics, such as risk measures and asset allocation analysis. This allows investors to assess the impact of a fund’s rolling returns on their overall portfolio performance. For example, an investor can see how the rolling returns of a particular equity mutual fund have contributed to the growth or volatility of their equity portfolio segment.
Discount Brokers: Even discount brokerage platforms like Charles Schwab or E*TRADE have started to provide more in-depth mutual fund research capabilities, including access to rolling returns. While their interfaces may be more focused on trading and account management, they still offer valuable performance data. Investors can search for mutual funds within the platform and access reports that include rolling returns over different time horizons. Some discount brokers also offer comparison tools that allow investors to compare the rolling returns of multiple funds side by side. This can be helpful for investors who are trying to decide between different funds within a particular asset class or investment style.
Financial News and Media Websites
Bloomberg: Bloomberg is a leading financial news and data provider. Its website and terminal (used by professional investors and financial institutions) offer detailed mutual fund information, including rolling returns. The Bloomberg website has a search function that allows investors to find specific funds and access their performance data. The rolling returns are presented in a professional and detailed manner, often with the ability to export the data for further analysis. Bloomberg also provides news and analysis related to the funds, which can help investors understand the factors that may be driving the fund’s rolling return performance. For example, if a fund has experienced a significant change in its rolling returns, Bloomberg might have an article discussing the impact of a new fund manager, a change in investment strategy, or a major market event that affected the fund’s holdings.
CNBC and Reuters: These financial news websites also provide some level of mutual fund performance data, including rolling returns. While their coverage may not be as in-depth as dedicated financial data providers like Morningstar or Bloomberg, they still offer valuable insights. CNBC might have segments or articles that discuss the top-performing mutual funds based on their rolling returns over a certain period. Reuters may provide news alerts when a fund’s rolling returns deviate significantly from its historical norms or from the market average. These sources can be useful for investors who want to stay updated on the broader trends in mutual fund performance and get a quick overview of which funds are performing well in terms of rolling returns.
Understanding and Interpreting Rolling Returns Data
Once you have accessed the rolling returns data from any of the above sources, it is essential to understand how to interpret it. Rolling returns should be analyzed over multiple time periods. A fund that has good 1-year rolling returns but poor 5-year rolling returns might have had a recent lucky streak but may not have a sustainable long-term performance. On the other hand, a fund with consistently strong 3-year and 5-year rolling returns is more likely to have a robust investment strategy and management team. It is also important to compare a fund’s rolling returns with its benchmark and category peers. If a fund consistently underperforms its benchmark in terms of rolling returns, it may not be a good investment choice. Additionally, investors should look at the volatility of the rolling returns. A fund with highly volatile rolling returns might be riskier than one with more stable performance, even if the average returns are similar.
Conclusion
In conclusion, checking the rolling returns of mutual funds is an important part of the investment analysis process. There are numerous sources available, from dedicated financial data providers and AMCs to online brokerage platforms and financial news websites. By using these sources and understanding how to interpret the rolling returns data, investors can make more informed decisions about their mutual fund investments and build portfolios that are better suited to their financial goals and risk tolerance. It is advisable to use multiple sources to cross-validate the data and gain a more comprehensive understanding of a fund’s performance over time.
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