The performance of a particular scheme of a mutual fund is denoted by net asset value (NAV). As defined in the AMFI booklet, 'net asset value' is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the [...]
The following points highlight the top eight methods used for determining the variability of return on mutual funds. The methods are: 1. Standard Deviation 2. Sharpe Ratio 3. Treynor Ratio 4. Sortino Ratio 5. Differential Return 6. Jensen's Alpha 7. Appraisal Ratio 8. M2 Measure. Method # 1. Standard Deviation: Standard deviation looks at funds volatility in terms of rise [...]
The following valuation methods are generally used basing on the industry averages or averages of a similar company in the same industry: 1. Dividend Yield Method 2. Earnings Yield Method 3. Return on Capital Employed Method 4. Price/Earning Method. 1. Dividend Yield Method: Ownership of shares in a company entails the holders of shares to receive dividends as and when [...]