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I am working on a dataset with aim to predict the MF ratings. There are cols like, 10 yr, 7 yr, 5 yr etc returns. I also have commencement date of MFs, the question is there are MFs with commencements dates only 3 yrs back, so would it be prudent to impute the returns for them for 10 yrs and 7 yrs period?

In my opinion that would be wrong, but then one of the requirements for ML models is to have no missing values in the data, and adding a 0 would be wrong too.

Need suggestions.

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To put it very bluntly: The requirements of ML models are irrelevant to the principles of financial analysis.

Imputing the returns is fundamentally extremely unsound.

The best you can do is trim the dataset down to the smallest timeframe (in your case, 3 years). Or you can consider only those funds for which you do have sufficient data.

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  • $\begingroup$ Thanks mate, i do agree to that. $\endgroup$ Apr 14 '20 at 16:20

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