Mutual Fund Hack - You Can't Miss | Kirtan Shah CFP
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7 ماه پیش
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Alpha is a very interesting
Alpha is a very interesting data point to look at before selecting your mutual fund scheme.
When you try and compare 2 funds only on the basis of returns generated, you miss out on a very important factor which is the risk the fund took to generate that returns.
The best way to compare funds is to understand the returns generated with respect to the risk taken and that’s Alpha.
+1% alpha means, that the fund generated 1% more than the minimum return expected from the fund because of the risk the fund took.
-2% alpha means that the fund generated 2% lower than what it should have had generated because of the risk it took.
There are funds which have beaten the index but have negative alpha and hence you want to look at alpha of the fund and not the returns vs the index.
You can find the Alpha of the fund at www.advisorkhoj.com
- Search for the fund in the fund tab
- Scroll down in the funds page
- Alpha will be mentioned under Indicators
Happy investing!
#FPAEdutech #FinancialPlanningAcademy #InvestmentHacks #MutualFundTips #SmartInvesting #FinancialFreedom #WealthBuilding #MoneyManagement #Investing101 #GrowYourWealth #FinancialPlanning #InvestWisely #FundamentalAnalysis
When you try and compare 2 funds only on the basis of returns generated, you miss out on a very important factor which is the risk the fund took to generate that returns.
The best way to compare funds is to understand the returns generated with respect to the risk taken and that’s Alpha.
+1% alpha means, that the fund generated 1% more than the minimum return expected from the fund because of the risk the fund took.
-2% alpha means that the fund generated 2% lower than what it should have had generated because of the risk it took.
There are funds which have beaten the index but have negative alpha and hence you want to look at alpha of the fund and not the returns vs the index.
You can find the Alpha of the fund at www.advisorkhoj.com
- Search for the fund in the fund tab
- Scroll down in the funds page
- Alpha will be mentioned under Indicators
Happy investing!
#FPAEdutech #FinancialPlanningAcademy #InvestmentHacks #MutualFundTips #SmartInvesting #FinancialFreedom #WealthBuilding #MoneyManagement #Investing101 #GrowYourWealth #FinancialPlanning #InvestWisely #FundamentalAnalysis
7 ماه پیش
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