Why Is My Paramount Equity Fund Return Different from the YTD Performance After Investing in December?

This is a very common misunderstanding when investing in equity funds. Nothing is wrong — it’s just how YTD works vs. your personal return.
Let’s break it down very simply.
First — What You Expected
You invested in December 2025 in Paramount Equity Fund and expected:
“When January starts, my return should grow exactly like the YTD.”
But that’s not how YTD works.
Simple Explanation (Mama Ngozi Version 🍅)
Imagine:
On January 1, tomatoes price = ₦100
Today, tomatoes price = ₦150
So market YTD gain = 50%
But Mama Ngozi bought tomatoes in December at ₦140
Now:
₦140 → ₦150 = only 7% gain
Even though YTD = 50%, Mama Ngozi only got 7%
That’s exactly what happened to your investment.
What YTD Actually Means
YTD (Year-To-Date) means:
Performance from January 1 of the current year until today
So YTD is calculated from:
January 1 price
Not when you invested
Why Your Return Is Different
There are 3 main reasons:
1. You Invested Before January (Different Entry Price)
If:
December price = higher
January price = lower
Then YTD may look big — but your return may be smaller.
Because:
You bought at December price
YTD started from January price
2. Equity Funds Move Daily
Paramount Equity Fund is an equity fund, meaning:
Price goes up and down daily
Timing matters a lot
So:
Someone who invested January may have better return
Someone who invested December may have lower return
3. YTD Is Market Performance — Not Personal Performance
Important difference:
YTD
Your Return
Market performance
Your entry performance
Starts January 1
Starts when you invested
Same for everyone
Different for each investor
Example (Simple Numbers)
Date
Fund Price
Dec 2025
₦10
Jan 2026
₦8
Today
₦11
YTD:
₦8 → ₦11 = 37.5%
Your return:
₦10 → ₦11 = 10%
See the difference?
Good News
This is not bad — in fact:
You invested early
You are thinking long-term
Equity funds perform better over time
You’re doing the right thing.
My Advice (Very Important for Equity Funds)
With equity funds:
Ignore short-term percentage differences
Focus on 1–3 years performance
Continue adding gradually