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Mutual Funds

Beta

Beta is a fundamental concept in finance that allows us to assess the risk associated with a particular mutual fund. It is derived by dividing the covariance of the fund by its variance. A Beta ratio of 0.4 or 40% indicates that the fund is 0.6 or 60% less volatile than the overall market. This helps investors understand the potential risks and returns associated with their investment choices.

Related terms

AMFI

Understand the meaning and definition of AMFI in the context of stock market, trading, and investments.

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No-load Fund

Understand the meaning and definition of No-load Fund in the context of stock market, trading, and investments.

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Benchmark

Understand the meaning and definition of Benchmark in the context of stock market, trading, and investments.

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Exchange-Traded Funds (ETF)

Understand the meaning and definition of Exchange-Traded Funds (ETF) in the context of stock market, trading, and investments.

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Entry Load

Understand the meaning and definition of Entry Load in the context of stock market, trading, and investments.

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Annualized Returns

Understand the meaning and definition of Annualized Returns in the context of stock market, trading, and investments.

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