If a fund's return is at 12 % in 1 year and another fund gives 15% in 3 years. Assuming 10,000 is the investment in both funds, what will be my returns in 1 year and 3 years respectively.
-Sankar Narayanen
he fund with 12% return will generate a profit of Rs 1200 after one year, and the second fund with 15% annualized return will generate a profit of Rs 5209 in 3 years. This is because the profits that you earn in the first and second year stays invested for the balance period along with the principal amount.
This article was originally published on September 27, 2016.
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