Calculating Returns

How does one calculate the actual return on a mutual fund scheme, whether it is SIP/equity/debt or some other type of investment? Should tax and inflation be deducted to find the correct return?

MLF’s Reply:  One of the best ways to calculate the returns on your mutual fund portfolio is to use the automated service of Computer Age Management Services, the registrar and transfer agent for most mutual funds.

Given below are the links to the service: Consolidated Portfolio Statement:
Realised Gains Statement:
The returns, would be based on the NAV of the schemes; hence, these are not adjusted for tax or inflation. You could also check your consolidated account statement of all the registrars’ at

Post-tax returns?
If you are looking to compare returns over multiple products, such as bank fixed deposits (FDs), corporate FDs, etc, it would make sense to calculate the post-tax returns to get an idea of how tax-efficient your investments are.

Inflation-adjusted returns?
As inflation would be a constant factor, the rate may not be required to calculate real returns of your portfolio (adjusting for inflation), if you are just comparing returns on different assets. However, you may find it interesting to know whether or not your investments are beating inflation.

Have a Mutual Fund Query? Try  Moneylife Foundation’s Mutual Fund Helpline. Submit your query here:




3 years ago

CAMS calculation on Consolidated Portfolio Statement is flawed. It is a days weighted average of returns and can sometimes show an XIRR of 100+% whereas the absolute profit would be 20 odd %.

Pulse Beat

Statins aren’t Nice

National Institute for Health and Care Excellence (NICE), the highest watchdog for clinical excellence in the UK, is under the scanner since they put out atrocious data on statins. Some doubting Thomases in British medical circles raised an alarm and now the cat is out of the bag. Most members of the committee that looked into statins had been on the payroll of drug manufacturers but did not disclose their ties to the companies while they were acting as the jury and the judge for the same drugs. I have been writing about American doctors and their guidelines committees; one study even wrote that statins did not have any side-effects while even placebos had side-effects. That looks like a little too much to swallow. Money rules the roost even in such sensitive areas like medicine. I have also been writing against statins for decades and I am happy to have been vindicated. 

A healthy Micro-biome

A new study published in the Journal of Allergy and Clinical Immunology found that maintaining too high a level of hygiene and cleanliness can actually cause newborn babies, particularly those below one year of age, to suffer from allergies and asthma later in life. A diverse bacterial exposure gave babies’ immune system an extra boost which makes them less susceptible to allergies and wheezing. 

Lights Out

Before Thomas Alva Edison made mass production of the electric bulb possible, mankind slept better through the night. Now, in some major cities, there is no night at all. Lights of varying intensity penetrate deep into your bedroom even with the curtains drawn. An Oxford study had shown that the brighter your bedroom at night, the worse is the quality of sleep you get. Computer lights in the bedroom and the brightness of some of the more advanced light bulbs contribute to your difficulty in falling asleep. Dim lights are healthier in the bedroom compared to brighter ones. In larger cities, if the bedroom is bright even after you put off your lights, you might have to have thicker curtains. If you can see through the room in spite of all of that, it is time you wore an eye-blind to shut off the lights; but do remember to take them off when you want to go to the bathroom. The dirty electricity that your bedroom is full of these days is another blow to good sleep. The common culprits are CFL bulbs, computers, charging cell phones, cordless telephones, electric alarm clocks, electric blankets, refrigerators, TV screens (which are alive) and many such gadgets. Thank God, our ancestors were not bothered by any of these and lived happily.

Mango the Super-Fruit

Mangoes are now known to prevent certain cancers like that of the colon and breast. Furthermore, mangoes have high levels of flavonoids like beta-carotene and alpha-carotene which help protect against oral cavity and lung cancers. With very high Vitamin A content, they keep your eyes, skin and bones healthy. Because of their high potassium and low sodium, mangoes are good food for those wanting to reduce their blood pressure. Because of their high fibre content, they might even be healthy for the heart. Mangoes also have a chemical that balances your blood sugar and might even be good for diabetics, in small doses. 


NRE-FD or Debt Funds?

I am an NRI now and my income in India is not taxable. Through some channels, I was being asked to buy gilt and long-term debt funds. But a simple NRE-FD makes more sense to me for the fixed-income product category as it’s tax-free.

MLF’s Reply: Debt schemes of mutual funds invest in low-risk (please note: not risk-free) bond securities and money-market instruments. As you may be aware, interest rates and bond prices are inversely related—when yields rise, bond prices (or NAVs of debt schemes) fall and vice-versa. Debt schemes are further categorised into long-term and short-term, depending on the duration (time to maturity) of the securities in which they invest. Long-term debt schemes, which have a longer tenor, are more sensitive to change in interest rates and can be highly volatile.

Therefore, your returns from gilt and long-term debt schemes would depend on the timing of your purchase and exit. It is important to note that bond yields are hovering around 8.50%, as the Reserve Bank of India (RBI) has kept the benchmark interest rate unchanged at 8%. Thus, given the high-yield scenario, it may be a good time to invest in debt schemes.

If you are looking for stable, non-volatile, returns and not having to keep a track of interest rate cycles, a bank fixed deposit would be a better option.

You may also find it interesting to read “Safe & Higher Returns: Look beyond Bank FDs”; “SIP in Bond Funds”; “Five Reasons not to Buy Debt Funds” .

Have a Mutual Fund Query? Try  Moneylife Foundation’s Mutual Fund Helpline. Submit your query here:


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