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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

Lock-in Period

Understand the meaning and definition of Lock-in Period in the context of stock market, trading, and investments.

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Coupon Payments

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

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Equity Funds

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

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Dividend Stripping

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

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Indexation

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

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Net Asset value (NAV)

Understand the meaning and definition of Net Asset value (NAV) in the context of stock market, trading, and investments.

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