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Trending: Top 3 California Municipal Bond Funds
Justin Kuepper
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Municipal bonds have been a safe haven within fixed income markets that have...
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In order to analyze mutual funds properly, risk ratios need to be examined to determine how volatile they are. Key indicators like alpha, beta, R2, and standard deviation can help investors find mutual funds that match their risk tolerance and let them know how safe they’re return predictions will be.
This tells investors how much better or worse the fund does relative to the index itself. It’s also a gauge of how good the management of the fund is. Alpha is read as a percentage so an alpha of 1 means the fund outperformed its benchmark by 1%.
If a fund has a beta of 1, that means its performance will perfectly match the performance of the benchmark index. More than 1 means the fund will move in a direction greater than the index – up or down. Anything less than 1 and the fund will mark a lesser movement than the index. Some funds may even have a negative beta which tells you its performance is inversely correlated with the index.
R2 also helps investors get a clearer understanding of a fund’s beta. The higher the R2, the more accurate a fund’s beta is likely to be.
Receive email updates about best performers, news, CE accredited webcasts and more.
News
Justin Kuepper
|
Municipal bonds have been a safe haven within fixed income markets that have...
Kristan Wojnar, RCC™
|
We are exploring the topics of virtual nonverbal communication, getting your blogs to...
Justin Kuepper
|
Let’s take a look at a few key pieces of advice to stop...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
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The phrase ‘bear market’ has been thrown around a lot lately, but it...
In order to analyze mutual funds properly, risk ratios need to be examined to determine how volatile they are. Key indicators like alpha, beta, R2, and standard deviation can help investors find mutual funds that match their risk tolerance and let them know how safe they’re return predictions will be.
This tells investors how much better or worse the fund does relative to the index itself. It’s also a gauge of how good the management of the fund is. Alpha is read as a percentage so an alpha of 1 means the fund outperformed its benchmark by 1%.
If a fund has a beta of 1, that means its performance will perfectly match the performance of the benchmark index. More than 1 means the fund will move in a direction greater than the index – up or down. Anything less than 1 and the fund will mark a lesser movement than the index. Some funds may even have a negative beta which tells you its performance is inversely correlated with the index.
R2 also helps investors get a clearer understanding of a fund’s beta. The higher the R2, the more accurate a fund’s beta is likely to be.
Receive email updates about best performers, news, CE accredited webcasts and more.
News
Justin Kuepper
|
Municipal bonds have been a safe haven within fixed income markets that have...
Kristan Wojnar, RCC™
|
We are exploring the topics of virtual nonverbal communication, getting your blogs to...
Justin Kuepper
|
Let’s take a look at a few key pieces of advice to stop...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...