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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

Yield

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

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Passive Funds

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

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AMFI

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

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Gilt Funds

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

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Default Risk

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

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