Skip to main content
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

Benchmark

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

MORE
Cut-off Time

Understand the meaning and definition of Cut-off Time in the context of stock market, trading, and investments.

MORE
New Fund Offer (NFO)

Understand the meaning and definition of New Fund Offer (NFO) in the context of stock market, trading, and investments.

MORE
Annualized Returns

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

MORE
Net Asset value (NAV)

Understand the meaning and definition of Net Asset value (NAV) in the context of stock market, trading, and investments.

MORE
Arbitrage Funds

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

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91