RollingReturnsvsSensex&Gold
Compare how a mutual fund's rolling returns stack up against Sensex and Gold. Understand relative performance across asset classes over any time period.
Understanding Cross-Asset Rolling Returns: Mutual Funds vs Sensex & Gold
Comparing mutual fund returns against different asset classes like equity (Sensex) and gold provides critical perspective on relative performance. Each asset class behaves differently across market cycles -- equity tends to outperform during economic expansion, while gold often serves as a safe haven during uncertainty and inflation. By overlaying a mutual fund's rolling returns with Sensex and gold, you can see how your fund has performed relative to these major asset classes across every possible holding period within your selected date range.
This cross-asset comparison is particularly valuable for understanding asset allocation decisions. If a mutual fund's 5-year rolling returns have consistently exceeded both Sensex and gold, it demonstrates strong value generation. Conversely, periods where gold outperforms equity funds highlight the importance of multi-asset diversification. Rolling return analysis removes the bias of cherry-picked dates and shows you the full distribution of outcomes. Acornia, as a mutual fund distributor, provides this research tool to help you explore how different asset classes have performed relative to each other over time.
How to Use This Tool
- Search and select a mutual fund scheme to compare its rolling returns against Sensex and gold.
- Choose the rolling period (1-year, 3-year, 5-year) and the date range for the cross-asset comparison.
- Analyze the chart to see how your selected fund's rolling returns compare with Sensex and gold across every possible holding period in the range.
Frequently Asked Questions
Q: Why compare a mutual fund with gold?
Gold is a traditional asset class in India and is often held as a hedge against inflation and currency depreciation. Comparing a mutual fund's returns with gold helps you understand the opportunity cost of choosing one asset over another. During certain periods (such as 2019-2020), gold significantly outperformed equity, reminding investors that diversification across asset classes can reduce overall portfolio volatility.
Q: Does Sensex always represent equity performance accurately?
The Sensex tracks the top 30 companies on BSE and primarily reflects large-cap equity performance. It may not accurately represent the performance of mid-cap, small-cap, or sectoral funds. For a more precise comparison, use the Rolling Returns vs Benchmark tool where the fund is compared against its specific SEBI-assigned benchmark index. The Sensex comparison here is useful for a broad asset-class-level perspective.
Q: What does it mean when all three lines converge on the chart?
When the rolling return lines for the mutual fund, Sensex, and gold converge, it means all three asset classes delivered similar returns during those rolling periods. This often happens during transitional market phases. Divergence, on the other hand, indicates that one asset class significantly outperformed or underperformed the others. Wide divergence followed by convergence is a natural market cycle pattern and underscores the value of long-term, diversified investing.
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Acornia Investment Services Pvt Ltd (ARN: 192746) is an AMFI-registered mutual fund distributor. All investments are subject to market risks. Please read all scheme-related documents carefully. The information on this website is for general informational and educational purposes only and does not constitute financial advice or a recommendation.