Ten Year Return

Indicator Description

Although Ten Year Fund Return indicator can give a sense of overall fund long-term potential, it is recommended to compare funds performances against other similar funds or market benchmarks for the same 10-year interval.

Ten Year Return 
 = 
(Mean of Monthly Returns - 1) 
X  
100% 

Ten Year Return shows the total annualized return generated from holding a fund for the last 10 years and represents fund's capital appreciation, including dividends losses and capital gains distributions. This return indicator is considered by many investors to be the ultimate measures of fund performance and can reflect the overall performance of the market or market segment it invests in.

Ten Year Return In A Nutshell

The ten year return should be used for mutual funds and equities you plan on holding for a very long time and will also purchase more during the life of your investing goals. For example, you may want to look at the ten year return of a mutual fund to understand if you will make money over the long haul. Of course past performance does not guarantee future profits, but it will give you a decent indication.

Just as the title states, this will cover the ten year return. The ten year return is for the extremely long term investor, giving you a look at the returns that would likely include a full business cycle and many of the seasonality’s of the equity you are researching. However, do not get caught up in the finer details as many, if not all, markets will fall at some point.

Closer Look at Ten Year Return

Here are a few of the good items with a ten year return analysis. First, the ten years will give you a real look at how the company does during a business cycle. Ten years should be long enough to cover a business cycle, allowing you to see how the equity performs during certain market conditions. Secondly, you can jump into slightly more detail and see which seasons affect the stock. An example being the retail market and how they usually break into the black during the holiday season or quarter. Lastly, you can get a true sense of how the equity will perform. Over a ten year period, you will likely see many outside market affects and how the equity reacted.

A few negatives to keep in mind are that first; it is not for the short term investor as over a ten year span, a short term investor is not likely to see many of those affects. Yes, it will paint a better picture, but as a short term investor, you would be more interested in the day to day news of performance of the stock and company. Secondly, it could have a negative impact on your research because not many people hold an equity for ten plus years. To hold something that long, you have to have faith that the company or performance will sustain. Obviously an S&P tracking mutual funds will always perform, but speaking in terms of a company or ETF, it may not do well for ten plus years.

Find the right time frame that fits your investing and trading style and find a way to utilize that. Not all times frame are going to give you what you need, but it certainly won’t hurt to try. If you have questions, reach out to an investing community and they can help to push you in the right direction and even give you real time feedback.

Other Suggestions

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

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If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
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Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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