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 adju...