Last updated:
Investment Knowledge: Whether it is a stock market or mutual fund, every investor who invests money is desired that he gets strong returns. If you also want to do this, then it is very important to keep an eye on 3 formulas.
Investors must know three tips of mutual funds.
Highlights
- Investors can get strong returns from multi asset funds.
- Short ratio improves risk-reserved returns.
- The sortino ratio measures negative risk-dominated returns.
New Delhi. As soon as there is a slight movement in any corner of the world, the sit-up starts in the stock market. In such a situation, investors are looking for an option, which can reduce the risk and get strong returns. If you are also looking for a similar option as an investor, then multi asset funds can prove to be the best bet. ICICI Multi Asset Fund has given tremendous returns to its investors for the past several years, that too without higher risk. In such a situation, investors will have to understand 3 formulas, from which they can reduce their risk and get more returns.
Based on the standards of mutual funds, ICICI Prudential Multi-Asset Fund is quite special in its category. If we look at its sharp ratio, it is measured by dividing the risk raised by calculating additional returns at a risky rate. The higher this ratio, the better the risk-razor returns. The sharp ratio of ICICI Prudential Multi-Asset Fund is 0.63, the highest in this category (the average ratio in the category is 0.42).
It is necessary to know sortino ratio
The sortino ratio is used to measure negative risk-contacts. This ratio is achieved by reaching the additional returns of funds at the risk-free rate and dividing it by standard deviations of negative returns. Here too, ICICI Prudential Fund performs the best and is much higher than the category average. The trainer ratio gives additional returns of funds at risk-free rate for each unit market risk. The market risk here is beta. A high ratio indicates that this fund is capable of giving better returns to the market risk taken by itself. The trainer ratio of this fund is 2.72, which is much higher than the average of 1.68 of the category.
The next main criteria to view the performance of a fund is up/down capture. The upside captured ratio of a fund shows how much NAV increases compared to the benchmark during the rally. The downside capture ratio indicates how the NAV of the scheme is compared to the benchmark. So more than one up/down capture ratio indicates that the fund performs well during the rally and falls less during the correction.
Risk ratio of multi -asset of top five funds
- ICICI Prudential 4.70
- UTI Multi Asset 1.25
- Nippon India 1.16
- SBI Multi 1.20
- HDFC Multi 1.34
Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist …Read more
Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist … Read more
