Skip to main content
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

Minimum Investment Amount

Understand the meaning and definition of Minimum Investment Amount in the context of stock market, trading, and investments.

MORE
Exchange-Traded Funds (ETF)

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

MORE
Adjusted NAV

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

MORE
Close Ended Funds

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

MORE
Sector Funds

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

MORE
Index Funds

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

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91