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Sharpe Ratio in Mutual Funds: Meaning, Formula & Example

Sharpe Ratio in Mutual Funds: Meaning, Formula & Example

What Is the Sharpe Ratio?Sharpe ratio is a measure of a fund’s performance compared to the risk. This ratio helps to analyse if the fund’s returns are worth the risk taken.William Sharpe developed the Sharpe ratio in 1966. This ratio was earlier called the reward-to-volatility ratio. What Is the Sharpe Ratio Formula?Sharpe ratio is calculated using […]

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What are liquid funds

What are liquid funds?

Liquid Funds SEBI categorization of mutual fund schemes, define liquid funds as funds that invest in debt and money market securities which mature in 91 days only. They are called liquid because units can be converted to money and get credited to accounts very easily.Benefits of investing in liquid fundsA good alternative to savings accounts

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sectoral mutual funds

What are sectoral mutual funds?

Sectoral mutual funds, Their Benefits and Drawbacks.As the name suggests, sectoral mutual funds invest primarily in the stocks of specific sectors, such as real estate/infrastructure, technology, pharmaceuticals, banking, and financial services.And, as per SEBI’s guidelines, these types of funds have to invest minimum 80% of their assets in equity and equity-related instruments. It means, 80%

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