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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

Purchase Price

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

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Exit Load

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

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Open-ended Fund

Understand the meaning and definition of Open-ended Fund 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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Investment Strategy

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

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