Tag Archives | Mutual Funds

What is Mutual Fund?

A mutual fund is a financial intermediary in the capital market that pools collective investments in form of units from retail and corporate investors and maintains a portfolio of various schemes which invest that collective investments in equity and debt instruments on behalf of these investors. Mutual fund is an expert entity which helps an investor invest in equity and [...]

By |2022-04-15T12:08:38+05:30April 15, 2022|Mutual Funds|Comments Off on What is Mutual Fund?

Determining the Variability of Return on Mutual Funds | Financial Management

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 [...]

By |2017-10-09T08:51:42+05:30October 9, 2017|Return|Comments Off on Determining the Variability of Return on Mutual Funds | Financial Management

Calculating the Return on Mutual Funds (Formula) | Financial Management

The investor who invests in mutual fund units can receive returns in the following two ways: 1. Capital Appreciation: Profit earned on sale of units at a higher NAV than the original cost. 2. Income Distribution (Dividend ): When a fund makes a profit on its investment, this profit will be given to investor as a dividend which can be [...]

By |2017-10-09T08:51:42+05:30October 9, 2017|Return|Comments Off on Calculating the Return on Mutual Funds (Formula) | Financial Management
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