India, Sept. 11 -- Learn how to understand mutual fund returns beyond the final amount, including absolute returns, annualised returns, investment growth, and key performance factors.

An account balance tells you what your investment is worth. It does not, by itself, tell you how well the investment has performed. A larger balance could reflect fresh contributions, investment growth or both.

To understand mutual fund returns, you need three pieces of information: how much money went in, when it went in and what came back or remains invested. Absolute return, CAGR and XIRR organise that information in different ways.

Your current investment value is the number of units you hold multiplied by the applicable net asset value, or NAV.

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