{"id":1012,"date":"2025-05-14T12:18:35","date_gmt":"2025-05-14T12:18:35","guid":{"rendered":"https:\/\/bfccapital.com\/blog\/?p=1012"},"modified":"2025-05-14T12:18:36","modified_gmt":"2025-05-14T12:18:36","slug":"what-are-trailing-and-rolling-returns-a-simple-guide-2024","status":"publish","type":"post","link":"https:\/\/bfccapital.com\/blog\/what-are-trailing-and-rolling-returns-a-simple-guide-2024\/","title":{"rendered":"What Are Trailing And Rolling Returns? A Simple Guide 2024"},"content":{"rendered":"

\"Trailing<\/p>\n

Trailing and rolling returns:<\/span><\/strong><\/h2>\n

Trailing And Rolling Returns are ways to measure how much money an investment has made. Trailing returns look back at a fixed period, like one or five years. Rolling returns are calculated over a set period that is measured over a duration of time. Both methods provide useful information for investors but have different methodologies.\u00a0<\/span><\/p>\n

In this article, we have discussed the meaning of Trailing and rolling returns, their features and limitations. Additionally, investors can also know which of the two is a better indicator by comparing both.<\/span><\/p>\n

Trailing Returns Meaning<\/b><\/span><\/h2>\n

Trailing returns measure the performance of an investment over a fixed period. It is calculated by determining the percentage change in the value of mutual funds at the beginning and end.\u00a0<\/span><\/p>\n

The formula of trailing returns is<\/span><\/p>\n

Trailing Return = [(Ending Value – Beginning Value) \/ Beginning Value] x 100.\u00a0<\/b><\/span><\/p>\n

For instance, if an investment was worth Rs 100 at the start of a year and Rs 120 at the end. Then, the trailing return would be [(120-100)\/100] x 100 = 20%<\/span>.<\/span><\/span><\/p>\n

Rolling Returns Meaning<\/b><\/span><\/h2>\n

Rolling returns measure the performance of an investment over a fixed, moving period. Unlike trailing returns which look backward from a specific end date. Rolling returns calculate returns for consecutive\u00a0 fixed or annualized periods.<\/span><\/p>\n

For example, a 12-month rolling return would calculate the return for the past 12 months. You can then shift the period forward by one month and recalculate.\u00a0<\/span><\/p>\n

The formula for each period remains the same as trailing returns:\u00a0<\/span><\/p>\n

[(Ending Value – Beginning Value) \/ Beginning Value] x 100.\u00a0<\/span><\/p>\n

The returns are calculated for several periods for a given time duration. Investors can identify the trends in performance by analysing these rolling returns.\u00a0<\/span><\/p>\n

Features of Trailing Returns<\/b><\/span><\/h2>\n