In addition to that we evaluate the use of introducing time-variation in betas and alpha. The search for the most suitable model to measure mutual fund performance will be addressed along two lines. First, we are interested in the statistical significance of adding more factors to the single ...
But for folks who are looking to evaluate individual fund options, as building blocks for a diversified investment strategy, there are still lots of choices. Fortunately, there are a few high-level criteria you can rely on to help narrow down the vast array of funds out there into a ...
Index funds aim to replicate the performance of a specific market index, such as the Nifty 50 or the Sensex. The fund portfolio consists of securities that mirror the composition of the chosen index. These funds offer a passive investment strategy and generally have lower expense ratios than ac...
2 Meanwhile, securities lending may generate income for a fund, contributing to a positive effect on tracking difference, and therefore fund performance. Elements that affect tracking Let’s take a look at two hypothetical ETFs: A and B. ETF A has a 0.05% OER, while ETF B has a 0.10% ...
How will I evaluate my risk profile?Photo Every individual investor is unique. Not only with regards to investment objectives but even in approach and view of risk. This is what makes Risk Profiling absolutely crucial before investing. A Risk Profiler is essentially a questionnaire that seeks ...
rates in the long term. In the short term, funds that have a disparity between interest rates can actually perform at the same level. The shorter the time required before maturity, the less likely there is to be a major difference between one fund's performance and that of another fund. ...
Evaluate the risk associated with the mutual fund. Consider the volatility of the fund’s returns and the types of securities it invests in. Ensure that the fund’s risk level aligns with your risk tolerance. Fund Performance: Following that, you have chosen schemes in which to invest. ...
There are thousands of mutual funds to choose from, but not all of them will be a good fit. Consider your investing goals and risk tolerance before buying. Mutual funds with strong performance records and experienced fund managers can help maximize long-term portfolio growth and minimize shorter...
TheRelative Strength Index (RSI)is a momentum indicator that compares the magnitude of recent gains to recent losses in order to evaluate whether the mutual fund is overbought or oversold. An RSI above 70 would suggest that the mutual fund is overbought and its value is overpriced and poised t...
Impact Investing With a Robo-Advisor Is a Robo-Advisor Right For You? How to Evaluate a Robo-Advisor Related Terms Portfolio Management: Definition, Types, and Strategies Portfolio management involves selecting and overseeing a group of investments that meet a client's long-term financial obje...