Source: Colonial First State. Figures used for illustrative purposes only.
Unlike annualised returns, annual returns also provide a snapshot of a fund’s volatility. For example, over the 2019 calendar year, the fund returned 20.8% while over the following year, it returned ‑10.9% – a volatile range of 31.7% (see Figure 6 above). As illustrated in Figure 7, when considering annual return performance tables, it is important to remember that a percentage loss is not necessarily equal to a percentage gain. For example, a 50% loss requires a 100% gain to get back to where it started.