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Mutual Funds

Beta

Beta is a fundamental concept in finance that allows us to assess the risk associated with a particular mutual fund. It is derived by dividing the covariance of the fund by its variance. A Beta ratio of 0.4 or 40% indicates that the fund is 0.6 or 60% less volatile than the overall market. This helps investors understand the potential risks and returns associated with their investment choices.

Related terms

R-squared

Understand the meaning and definition of R-squared in the context of stock market, trading, and investments.

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Close Ended Funds

Understand the meaning and definition of Close Ended Funds in the context of stock market, trading, and investments.

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Annualized Returns

Understand the meaning and definition of Annualized Returns in the context of stock market, trading, and investments.

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Unitholder

Understand the meaning and definition of Unitholder in the context of stock market, trading, and investments.

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Growth Scheme

Understand the meaning and definition of Growth Scheme in the context of stock market, trading, and investments.

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