Absolute return 1Y

Absolute return 1Y represents the absolute growth in the funds NAV over a horizon of 12 months. For a return metric spanning over 12 months, the absolute figure equals the annualized figure.

Formula = (Ending NAV – beginning NAV)/ (Beginning NAV)

For eg : Following are the NAVs of fund A on different dates

31st March 2020 : 100

30th June 2020 : 105

30th September 2020 : 125

31st December 2020 : 135

31st March 2021 : 120

Returns as of 31st March 2021 would be :

Absolute return 3M = (120-135)/135 = – 11.11%

Absolute return 6M = (120-125)/125 = – 4%

Absolute return 1Y = (120-100)/100 = 20%

As we can see that time is not being used as a variable in the formula, that makes these returns absolute.