{
  "id": 9915347,
  "title": "Explained: Which mutual fund ratios should investors check before investing?",
  "url": "https://urgent.news/2026/09/26/explained-which-mutual-fund-ratios-should-investors-check-before",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T05:18:53.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/mf/analysis/explained-which-mutual-fund-ratios-should-investors-check-before-investing/articleshow/134497912.cms"
  },
  "original_language": "en",
  "account": "Investors evaluating mutual funds should consider more than just past performance. Key risk ratios provide valuable insight into a fund's risk profile. Alpha measures the difference between a fund's actual return and its expected return given its level of risk. A positive alpha indicates outperformance, while a negative alpha signals underperformance. Beta, representing a fund's volatility relative to the market, helps assess systematic risk. An R-square greater than one indicates a reliable beta. The Sharpe ratio evaluates risk-adjusted returns by comparing excess returns to the fund's standard deviation. The Sortino ratio focuses on negative downside volatility. The information ratio gauges a manager's ability to consistently generate excess returns over a benchmark. Lastly, semi-standard deviation measures downside volatility, providing insight into a fund's potential for losses.",
  "summary": "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 insights into volatility, consistency and risk-adjusted performance.",
  "key_points": [
    "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"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}