Fund Convention

Fund convention refers to a set of rules or guidelines that govern how investment funds operate, particularly in relation to financial reporting and performance measurement. It dictates how funds calculate and report returns, fees, and other financial metrics to ensure consistency and transparency for investors. By adhering to these conventions, funds provide a clearer picture of their performance, helping investors make informed decisions. This standardization is crucial for maintaining trust and facilitating comparisons between different funds or investment products in the financial market.