parameters used to select a mutual fund

PARAMETERS USED TO SELECT A MUTUAL FUND                         

1 )standard deviation

it indicates the volatility of the fund and this ratio represents how much the fund is fluctuated from its average returns.generally it is 1 to 10,but for a average equity fund it is about 

12-13

 

2)alpha ratio

this indicates how a fund has performed compared to its benchmark index.if alpha is 1,it means the fund has outperformed the benchmark index by 1%and if -1,it tells us that fund has underperformed by 1%

3)beta ratio

Beta measures the movement of the fund in relation to a overall market movement.if beta >1,it means the has delivered more volatility and if beta < 1 it means fund has given less volatility . generally less than 1 beta value funds are better.

4)sharpe ratio

this ratio helps to understand the return of an investment compared to its risk .Generally sharpe ratio tells is the fund has given the risk adjusted returns or not

5)treynors ratio

it indicates how much excess return is the fund generated for each unit of risk taken.higher the value means,fund has been able give better returns for the amount of risk taken.

6)sortino ratio

it is an improved variation of sharpe ratio.this ratio only measures downside risks that an investment portfolio accompany.generally 1 or more than one it means the fund has delivered better risk adjusted returns of earnings

best websites to filter out and analyse mutual funds

1)rupeevest                                                                                           it is a good website which i personally use to do the mutual fund comparison

2)value research

it is the india's leading independent investment research firm .which is also a good domain for mutual fund research