risk factorsbetasalphasIn this article we examine the risk factors that help explain long/short equity (LSE) mutual fund performance. We show that for most LSE mutual funds, 50%-80% of their returns can be explained using common factors such as capitalization, book-to-value ratio, dividend ...
Market risk is generally a risk associated with equity funds. Market Risk is the risk which arises when the value of an investment drops due to movement in market price of the securities. This is the most common risk for any investment. This may be caused by the macroeconomic factors. It ...
You should read the relevant offering documents of the Funds carefully for detailed information before deciding whether to invest in any of the Funds and you should pay particular attention to the risk factors set out therein. We recommend that you seek independent professional advice that takes int...
Government securities have no default risk, NAV of these schemes also fluctuate due to change in interest rates and other economic factors. Fixed Maturity Plans: Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns ...
Please note: When comparing funds, please consider all important factors, including information pertaining to fund fees, fund features, and fund objectives. While funds may track an index, the indices and strategies employed in seeking to achieve an investment goal may be different. Each fund’s ...
Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own. This is often referred to as a portfolio. The price of the mutual fund, also...
In cricket, when a batsman has to choose between scoring or defending, one of the important factors they assess is the risk of losing a wicket. If trying to score involves a high risk of losing a wicket, the batsman would most likely defend the delivery.
A mutual fund’s value can rise and fall with the market, so it comes with a degree of volatility and risk. There are also fees and taxes associated with mutual funds, which can impact returns. Whereas a GIC (Guaranteed Investment Certificate) offers a more guaranteed return, backed by the...
The more clearly you define your investment objectives and your tolerance for risk, the better you’ll be able to determine which mutual funds are appropriate for you. Make your choice There are thousands of mutual funds from which to choose. How do you know which funds meet your investment ...
However, only for small- and mid-cap funds, this beneficial behavior can be attributed to active management. After controlling for time-varying risk factors, all fund types perform equally poorly measured by their alpha.doi:10.1057/jam.2015.15Fischer, Mario...