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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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Passive Funds

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

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Unit Trust

Understand the meaning and definition of Unit Trust 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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Turnover

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

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Debt Funds

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

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