![]() Sortino - This ratio is a modification of the Sharpe Ratio that uses the downside deviation instead of the total standard deviation of the mutual fund.Sharpe Ratio - This ratio shows how much extra returns are being generated for the additional risk being taken by the fund.The standard deviation shows much the fund returns have moved up and down from their average in the past Standard Deviation - It is the measure of fund volatility.There are 4-5 key risk measurement ratios that are used to compare mutual funds ![]() AMCs can charge whatever they want as long as they don't cross the upper limit defined by the regulator There is a ceiling set by SEBI on how much AMCs can charge. The Expense Ratio is the annual percentage the fund house charges you for managing your money. All Mutual Funds are benchmarked to a particular index and this data shows how much more or less the fund has delivered compared to that index. The second criteria which are most often used are how the fund has performed against its benchmark. In most cases, prospective investors look at the 1 year, 3 years, and 5-year returns of different schemes to compare them. This is by far the most common criteria used to compare mutual fund schemes. There is the list of the most commonly used ones There are many different parameters that are available and are used while comparing Mutual Funds. Having a clear idea about how to compare mutual funds performance and other features can help investors choose schemes that are in line with their investment goals and help them design an investment portfolio that minimizes overall risk and maximizes returns. This is where comparing types of mutual funds can help you select the right schemes to invest in. Also considering that investing involves a long-term commitment using your hard-earned money, choosing the right Mutual Fund is critical for achieving long-term goals. While having options to choose from is definitely a good thing, having too many options can make fund selection quite difficult. This is because each of the 3 categories has multiple sub-categories with multiple Fund Houses offering similar funds. While the three broad choices of Equity, Debt, and Hybrid Funds seem simple enough, there are currently over 2000 Mutual funds in India that investors can choose to invest in. Investors are spoilt for choice when it comes to choosing which Mutual Fund to invest in. Why Do You Need to Compare Mutual Fund Schemes?
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