TL;DR
When evaluating fund performance, return rate, risk level, and costs should be considered. For example, a fund with a 15% annual return rate would generate 15,000 TL for an investor who invests 100,000 TL annually.
7 min readA comprehensive guide to how to evaluate fund performance. Evaluate as part of the stocks vs funds question.
What Is It?
Read alongside our mutual funds guide. ETFs and index funds are alternative instruments.
How to Evaluate
Sharpe ratio and management fee comparison are critical for fund selection. Analyze 2,000+ TEFAS funds on Borsafolio.
Analyze 2,000+ TEFAS funds.
Go to Fund Analysis →Related articles: Stocks vs Funds, Mutual Funds, What Is an ETF?, Index Funds.
Frequently Asked Questions
What is fund performance?
Fund performance refers to the returns generated by a fund over a specific period. For example, a fund that provides a 25% return over the last year indicates successful management.
How is the return rate calculated?
The return rate is the percentage of profit generated by a fund over a specific period. For instance, a fund that generates a 15% annual return means it provides 15,000 TL for an investor who invests 100,000 TL.
What does the risk level indicate?
The risk level indicates how much risk an investment carries. Funds with high return potential often have high risk, such as stocks like THYAO in the BIST 100 index.
How do fund costs affect returns?
Fund costs directly impact investors' net returns. For example, a 1% management fee can reduce the net return of a fund with a 10% return to 9%.
What is TEBAS?
TEFAS is a system that allows electronic transactions for investment funds. Investors can use this system to track fund performance data and historical performance.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
