Updated on March 13, 2023
Inception date is the date on which the fund or policy is launched.
Why is Inception Date Important
The older a mutual fund or scheme’s inception date, the more historical data will be avaiable for the investor to take appropriate investment decision. Investors can view the trend chart of fund performance since inception date and can base his/her investment decision accordingly. For instance, if a fund was launched in January 2015, its inception date will be 2015-01.
Benefits of Inception Date
Funds with longer performance track records allow investors to go through more history and assess overall fund performance. They can also look at the tenure of the fund manager vis-a-vis the fund’s inception date. During the tenure, if there has been a change in fund performance, it could mean change in portfolio management style. If a mutual fund has a very recent inception date, investors may be better off tracking the fund’s performance for some duration before making their investment move.