Analyzing Performance Metrics in Mutual Funds


When evaluating mutual fund options, it's crucial to analyze their performance metrics. While past performance does not guarantee future results, it can provide valuable insights into how the fund has performed over time. Here are some key performance metrics to consider:

1. Annualized Returns

Look for funds that have consistently delivered competitive returns over an extended period. Compare the fund's returns to its benchmark index to assess its relative performance. You can evaluate the return through the online SIP calculator.

2. Expense Ratio

The expense ratio represents the annual fees charged by the fund for managing your investments. Lower expense ratios can have a significant impact on your overall returns, so it's advisable to choose funds with lower expense ratios.

3. Risk Measures

Evaluate the fund's volatility and risk measures such as standard deviation and beta. These metrics can provide insights into the fund's sensitivity to market fluctuations and help you assess its risk-reward profile.

Read also: Maximizing Your Investments: A Comprehensive Guide to Using a SIP Calculator

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