Rolling Returns vs Point-to-Point Returns

A point-to-point return measures one start date to one end date — the 5-year CAGR on this site is a point-to-point figure. Rolling returns compute that same 5-year CAGR from every possible start date and look at the distribution.

The problem with a single window

Point-to-point returns are hostage to their endpoints. A 5-year figure starting near a market bottom looks superb; the same fund measured from a peak looks poor. Neither says much about the manager.

What rolling returns reveal

• Consistency: how often the fund beat its benchmark or category across many periods.
• Range: the best and worst outcomes an investor could have experienced.
• Whether strong headline numbers rest on one exceptional stretch.

How to use both

Use point-to-point CAGR across several horizons — as shown here for 1, 3, 5 and 10 years — to shortlist quickly. A fund strong at every horizon is less likely to be an endpoint artefact. Then check rolling returns on the fund's factsheet before committing.