Discrete performance is the percentage performance of an investment over specific defined time periods. This is often expressed in calendar years or quarters of a year, with a comparison against a Morningstar category, benchmark, or an index. The calculation of discrete performance for funds generally uses total returns, with dividends reinvested.
Discrete performance can be useful when used in conjunction with cumulative performance and annualised performance, which look at total performance and average annual performance over a total time period; discrete performance looks at specific portions of that overall time period. This can be useful to see whether a fund has consistently beaten or underperformed its benchmark or Morningstar category, for example.
It's important to note that performance includes the funds own management charge but excludes any product-specific related charges.
Past performance may not be repeated and should not be used as a guide to future performance.