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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

Dividend Stripping

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

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Launch Date

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

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Close Ended Funds

Understand the meaning and definition of Close Ended Funds in the context of stock market, trading, and investments.

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Direct Plan

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

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Global Funds

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

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Actively Managed Funds

Understand the meaning and definition of Actively Managed Funds in the context of stock market, trading, and investments.

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