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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Unitholder

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

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Dividend Payout

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

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Folio

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

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Switching

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

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Purchase Price

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

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