M* Chart tool: Rolling Returns

bee

Using M* chart tool there is a "rolling return" option which is describe as follows:

"The goal is to show you the frequency and magnitude of an investment's good and bad performance periods."

Full discription here:
morningstar.com/InvGlossary/rolling-returns.aspx

Mutual funds are typically bought with a longer time frame in mind, in fact short term holding periods are often accompanied with early redemption fee or future trading restrictions. Rolling Returns get to the heart of a mutual fund investors "holding period" success.

My question is: When a fund is purchased wouldn't the rolling return chart help provide a more accurate picture of an individuals performance? Basically an individual's investment success should be a combination of a mutual fund's performance over a particular holding period.

M* has rolling return setting that can be displayed as short as 3 months (usually the shortest holding period to avoid redemption fees) all the way up to 60 months (which often is mentioned as a minimum time frame for an equity fund manager to achieve a particular strategy.

Anyone using Rolling Return charts for your mutual funds?

Here's a link to M* chart link for VWELX. The rolling return feature can be found in the growth tab and then adjusted by time from (3-60 months):

quote.morningstar.com/fund/chart.aspx?t=VWELX&region=usa&culture=en-US

Ted

Dear Bee: Keep up the good work, especially the graphics, and keep on Rolling !
Regards,
Ted

Charles

Hi bee. Ha! I never noticed the feature, but I like it, especially the ability to change window period...for all the reasons you note. Good stuff.

Kaspa

Very nice! Wish they would do that for ETFs as well.