How do we measure performance vis-à-vis the Nifty on VRO? Is it possible to include this? Further, the performance dashboard with inflation-adjusted figures is confusing. Is there a primer on how to use the tool?
- Ganesh Krishnamurthy
The answer to the first part of your question is yes, we do have the functionality to compare the returns of your funds with an index like the Nifty. You can use the My Investments tool on Value Research Online to do so. If you go to the performance tab of the My Investments tool, you can assess that if you had invested the same amount and on the same date in an index, as you have invested in a particular fund, then how much more or how much less you would have made. So, this kind of insight into every single investment that you've made is very much possible to derive from the performance tab of the tool. But this functionality is disabled in the free version of this tool and you need to be a subscriber to the premium account to be able to get this information.
Coming to the inflation-adjusted returns, these returns show the actual returns you have made on your investments. For instance, if the total annualised return that your investments have fetched is about 9 per cent and during this, the inflation has averaged at about 6 per cent, then the actual return that you've made in a real sense is about 3 per cent only. This information can be very revealing for fixed-income investors.