What does annualised return mean?

skillboy

It says on a fund that the "Funds annualised growth" is as follows:

1 year = 28.75%

3 years = 13.77%

5 years = 23.90%

What does this actually mean? For example, the 3 years annualised growth of 13.77%, is that the same as compound interest of 13.77% per year for 3 years i.e. a total return of 47.25%?

Any feedback appreciated for this newbie!

Thanks

Linton

You are correct - equivalent annual compound interest.

skillboy

Thanks.

Are the annual growth / return percentages stated net of fees?

dunstonh

Are the annual growth / return percentages stated net of fees?

Net of fees for that particular share class. (important as unbundled funds will not include cost of adviser or platform/distributor. Bundled funds will include those but they are on their way out and used less going foward)