Fondsperformance

Fondsperformance refers to the measurable return generated by an investment fund over a specified period. It is typically reported as total return, including income and capital appreciation, and can be presented in absolute terms or relative to a benchmark. Common measures include annualized return, compound annual growth rate, and, for risk-adjusted assessment, the Sharpe ratio, Sortino ratio, and information ratio. Drawdown metrics such as the maximum drawdown describe downside risk. Performance is often contextualized against a benchmark or peer group to assess active management versus passive replication, and attribution analyses may separate effects of asset allocation from security selection.

Performance data come from fund prospectuses, semiannual or annual reports, and third-party databases such as Morningstar. When evaluating funds, investors should consider time horizon, reinvestment assumptions, and the impact of fees (expense ratios, front- or back-end loads) and taxes on net performance.

Performance figures are subject to biases and limitations, including survivorship bias, backfill, and liquidity constraints. Past performance does not guarantee future results; high past returns may reflect favorable conditions or higher risk rather than consistent skill. Consistency of outperformance, regime changes, and manager tenure help assess reliability.

Fondsperformance applies to mutual funds, exchange-traded funds and hedge funds, and is subject to regulatory reporting standards in many jurisdictions, such as UCITS in Europe and MiFID II guidelines. Investors use fondsperformance as one input among many factors—risk tolerance, fund strategy, and fees—when selecting funds.