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Explained: Which mutual fund ratios should investors check before investing?

Mutual fund risk ratios help investors assess a scheme beyond past returns. Key measures include alpha, beta, R-squared, Sharpe, Treynor, information, Sortino and semi-standard deviation, offering…

  • Alpha indicates outperformance or underperformance relative to expected return
  • Beta measures a fund's volatility compared to the market
  • Sharpe ratio evaluates risk-adjusted returns by comparing excess returns to standard deviation

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