Published Jun 6, 2026 4 Min Read

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Introduction

Trailing returns help you check a mutual fund’s past performance over a fixed period ending today. You can use them to compare funds, understand growth trends, and evaluate whether a scheme matches your investment goals.

  • Trailing returns are commonly shown for 1-year, 3-year, 5-year, and 10-year periods.
  • CAGR mutual fund calculations are generally used for periods longer than 1 year.
  • Rolling returns measure performance across multiple time periods, while trailing returns measure only one fixed period.
  • Expense ratios charged by the AMC are already adjusted in mutual fund NAV calculations.
  • SEBI requires every mutual fund scheme to display a colour-coded riskometer ranging from Low to Very High risk.
  • You can start a SIP from Rs. 100 per month on the Bajaj Broking website after completing mandatory KYC.

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What are trailing returns?


Trailing returns measure the performance of a mutual fund over a fixed past period ending on the current date. They help you understand how much the fund has grown or declined during that specific time.

For example, a 3-year trailing return checks the fund’s growth between today and the same date three years ago. Mutual fund platforms usually display trailing returns for 1-year, 3-year, 5-year, and 10-year periods.

If the holding period is more than one year, trailing returns are usually shown as CAGR mutual fund returns. CAGR means Compound Annual Growth Rate. It shows the average yearly growth rate over the investment period.

\mathrm{CAGR}=\left(\frac{\mathrm{Final\ Value}}{\mathrm{Initial\ Value}}\right)^{\frac{1}{n}}-1

Here, n represents the number of years you stayed invested in the mutual fund.

What are the main features of trailing returns?

Trailing returns are widely used because they are simple to understand and compare. You can quickly check how a scheme performed over a selected time period.

FeatureMeaningWhy it matters
Fixed time periodMeasures returns for a set duration like 1 or 5 yearsMakes fund comparison easier
End-date basedAlways calculated up to the current dateReflects recent performance
Uses NAV dataBased on daily mutual fund NAV valuesGives standardised results
CAGR formatUsed for periods above 1 yearShows annualised growth
Available across schemesDisplayed for equity, debt, hybrid, and ELSS fundsHelps compare categories

Trailing returns are useful for quick comparisons, but they only show one performance window. They do not explain how consistently the fund performed during different market phases.

Example of trailing returns


Suppose you invested Rs. 1 lakh in a mutual fund five years ago. Today, the investment value has grown to Rs. 1.6 lakh.

The 5-year trailing return will show the annual growth rate earned during those five years.

\mathrm{CAGR}=\left(\frac{160000}{100000}\right)^{\frac{1}{5}}-1

In this example, the CAGR is around 9.86% per year. This means your investment grew at an average annual rate of nearly 9.86% over five years.

Trailing return calculations use NAV-based fund performance after adjusting for the AMC’s expense ratio. The expense ratio is deducted from the NAV and is not charged separately.

Why do investors use trailing returns?


Trailing returns help you compare mutual funds quickly before investing. They are commonly used by investors, distributors, and analysts to study past performance.

You may use trailing returns to:

  • Compare two funds within the same category
  • Check historical fund growth over 1, 3, or 5 years
  • Evaluate long-term equity fund performance
  • Study debt and hybrid fund stability
  • Understand CAGR mutual fund growth trends

Trailing returns are available for many fund categories on the Bajaj Broking website, including equity, debt, hybrid, ELSS, thematic funds, and NFOs.

SEBI also requires mutual funds to display a colour-coded riskometer. This helps you compare both returns and risk levels together before investing.

SEBI Riskometer LevelMeaning
LowLower market risk
Low to ModerateSlightly higher risk
ModerateBalanced risk level
Moderately HighHigher market-linked risk
HighSignificant market volatility
Very HighHighest market-linked risk

What are the limitations of trailing returns?


Trailing returns are useful, but they do not tell the complete story of a mutual fund’s performance. They only measure returns between two fixed dates.

This creates some limitations:

LimitationWhy it matters
Depends on one start dateResults can change based on market conditions
Ignores consistencyDoes not show performance across multiple periods
Past-focusedCannot predict future returns
Sensitive to market peaksBull or bear markets may distort returns

Mutual fund returns are market-linked and not guaranteed. Past performance does not guarantee future results.

Because of these limits, many investors compare trailing vs rolling returns together before making investment decisions.

Difference between trailing and rolling return in mutual fund


Trailing returns and rolling returns both measure mutual fund performance, but they work differently. Rolling returns study multiple time periods, while trailing returns study only one fixed period.

FeatureTrailing returnsRolling returns
Time periodOne fixed periodMultiple overlapping periods
Measurement stylePoint-to-pointContinuous performance
Consistency checkLimitedBetter performance consistency analysis
Ease of understandingSimpleMore detailed
Best useQuick comparisonLong-term evaluation

For example, a 5-year trailing return checks one specific 5-year period ending today. A 5-year rolling return checks every possible 5-year period over a larger timeframe.

Rolling returns usually provide a better picture of consistency because they reduce the impact of one market cycle. Many investors review both trailing returns mutual fund data and rolling returns before choosing a scheme.

Conclusion

Trailing returns help you measure how a mutual fund performed over a fixed past period. They are easy to understand and useful for comparing funds across equity, debt, hybrid, and ELSS categories.

At the same time, trailing returns only show one performance window. Comparing trailing vs rolling returns can give you a more complete understanding of consistency, market behaviour, and long-term performance before investing through the Bajaj Broking website.

Frequently asked questions

Can I use both trailing and rolling returns together?

Yes, you can use both trailing and rolling returns together when evaluating mutual funds. Trailing returns help you compare recent performance over fixed periods like 1 year or 5 years, while rolling returns help you study consistency across different market phases. On the Bajaj Broking website, you can compare multiple mutual fund categories and review both return types before starting a SIP from Rs. 100 per month.

Where can I find trailing and rolling return data for mutual funds in India?

You can find trailing and rolling return data on mutual fund research platforms, AMC websites, and the Bajaj Broking website. Most platforms display 1-year, 3-year, 5-year, and 10-year trailing returns along with rolling return charts. SEBI-regulated mutual funds also display a colour-coded riskometer ranging from Low to Very High risk to help you compare returns with risk levels.

Do expense ratios affect trailing and rolling returns?

Yes, expense ratios affect both trailing and rolling returns because the AMC deducts the expense ratio from the mutual fund’s NAV. This means the returns displayed to you are already adjusted for fund management costs. Expense ratios are expressed as a percentage of average daily net assets and vary across equity, debt, hybrid, and ELSS mutual fund schemes.

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