What is Base Effect?
Base Effect — How an unusually high or low figure in the comparison period distorts a growth or inflation reading.
In simple terms
A low base last year can flatter this year’s growth.
Why Base Effect matters when you invest
Understanding base effect helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Base Effect — frequently asked questions
What is Base Effect?
How an unusually high or low figure in the comparison period distorts a growth or inflation reading.
What does Base Effect mean in the stock market?
How an unusually high or low figure in the comparison period distorts a growth or inflation reading. A low base last year can flatter this year’s growth.
Can you give an example of Base Effect?
A low base last year can flatter this year’s growth.
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