Absolute return is the return that the Mutual Fund houses have given over a specified period. No matter about type of return (returns/gains/losses) that the Mutual Fund provides the absolute return without comparing to any benchmark Index. In other words, Absolute Return and Relative Return both are different from each other, because the absolute return is concerned with the … [Read more...]
Relative Return
Relative returns refer to returns as compared to the market index of the country. The relative return is the difference between the absolute return and the Market Index return. The main object of the Mutual Fund to produce a return that beats the benchmark. Relative return can also be known as alpha in the context of active portfolio management. Let’s explained by Funds … [Read more...]