Compounded Monthly Return Definition

Below please find a definition of “Compounded Monthly Return”

Financial Analysis Training & Glossary TermsCompounded Monthly Return: The average monthly increase that, when compounding is taken into account, would have produced a fund’s total return over any period of time. For example, if a fund had a one-year return of 20%, its compounded monthly return would be 1.53% — the amount it would have needed to gain in each of 12 months to achieve that full-year result.

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