What is 'Cumulative Performance' in a fund

[Deleted User]

I currently invest in shares but have been reading up on funds (on the assumption that - why not get a professional to decide which shares to buy?).

Came accross this one which is the 'most popular' fund on TD Waterhouse (Interactive Investor):

https://www.google.com/url?hl=en&q=http://www.iii.co.uk/investing/factsheet/KSJN/boost-nasdaq-100-3x-leverage-daily-etp&source=gmail&ust=1513334421024000&usg=AFQjCNGv7olpD2TGgKID1lopHSYdCGdOGg

Under 'Performance' there's this 'Cumulative perofrmance' thing.


Cumulative Performance in USD
3 mth 6 mth 1 yr 3 yr 5 yr
Fund 19.36% 33.51% 107.18% 182.01% 921.49%
Sector 5.78% 7.01% 12.45% 27.15% 64.99%
Relative to sector 13.58% 26.50% 94.73% 154.86% 856.50%
Rank within sector 8/315 3/310 2/303 2/250 1/225

Look at the 5yr performance - does that mean that if I had invested £1 at the beginning, this would now be worth £9.21?

longleggedhair

I've always assumed it to mean the total amount of gain over a given period.

BananaRepublic

A fund provider will normally give the % change in the fund value per year, and the toal % change relative so some start date, which is sometimes the fund creation date, or more often since 5 years ago.

For example a fund increases by 10% in year 1, 20% in year 2 and 30% in year 3. The cumulative changes are 10%, 32% and 71.6%. And the answer to your final question is yes.

Linton

Actually your £1 would be worth £10.21 - you have to add in the original value.

I cant believe this is the most popular fund to buy, just to look at and laugh. Checking up its factsheet the total fund size is £11M. More popular funds can be > £1Bn. Needless to say the fund is highly risky.