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Rohan Saha
Founder - Burn Inves...ย โขย 7m
Many people don't seem to understand one basic thing sometimes mutual fund (MF) returns appear higher than the returns from our individual stock trades. While looking at this, people often forget a very simple point: when we deposit money into a demat account, that money is not invested right away. To understand this with an example: if I deposit โน10,000 and only use โน2,000 to buy stocks, then my returns will be based only on that โน2,000 not the whole โน10,000. But in a mutual fund, returns (or losses) are calculated on the full โน10,000 that was invested. That's why calculating returns based on total capital isnโt always a good idea. If you really want to calculate returns, do it based on the capital actually used that will give you a more accurate picture of how much you've really earned.
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