Search Results
Measuring Risk & Return of Mutual Fund
[…] documents. Let us take a look at some key tools or ratios that measure this risk. 5.2 Alpha Alpha Alpha is the excess returns relative to market benchmark for…
Tracking Error: Meaning, Factors, Importance & Calculations
Introduction Tracking Error is a crucial concept in the world of finance and investing. It measures the deviation between the performance of an investment portfolio and its benchmark index. By…
Learn Basics of Mutual Funds From Stock Market Course
[…] is known as the interest rate risk. How Do We Measure The Risks Involved In A Mutual Fund? Alpha Alpha is the excess returns relative to market benchmark for…
How To Analyse Equity Mutual Fund
[…] would have gone up in similar way during the same period. Under-performance in a falling market, i.e. when the NAV of the scheme falls more than its benchmark is…
What is Alpha and Beta in Share Market
[…] components of an equation used to describe the performance of stocks and investment funds are alpha and beta. Beta is a metric for comparing volatility to a benchmark, like…
Key Metrics to Be Followed While Evaluating Mutual Fund
[…] The baseline for Alpha is 0. It means that if the value of Alpha for a mutual fund is 0, it earns the same returns as the benchmark index.…
Alpha
[…] stocks which outperform, usually because of higher earnings. Their return is higher than the market. Alpha calculates this difference, by comparing your stock or fund with a benchmark index.…
Important Documents In A Mutual Fund
[…] asset categories like mid-caps and small-caps may be highly exposed to market volatilities. This information can help investors judge the scheme’s risk profile before making an investment. Benchmark index:…
Understanding The Performance Of Your Fund
[…] + cess + surcharge Hybrid debt oriented fund Taxed at the investor’s income tax slab rate 20% + cess + surcharge 8.3. Using Index as a Benchmark An…
Learn About Measurement Of Risk From Stock Market Course
[…] the so-called active return on an investment. It is a common measure of assessing an active manager’s performance as it is the return in excess of a benchmark index.…
