Example 2
You bought a fund at an NAV of Rs.12.86/-
The NAV went down to Rs.9.14/- in 3 months i.e., 90 days.

Then, the annualized return as calculated using MS-Excel is:
fx=POWER(number,power)-1
=POWER(9.14/12.86,365/90) - 1
=POWER(0.7107,4.0555)-1

which is -0.7497 i.e., -74.96% (the negative sign indicates loss)

Hope now its more clear to you.