Important mutual fund metrics when picking mutual funds
So far in the series, we've discussed equity and debt mutual funds, how they work, and the risks. Putting all this together, once you get down to building your portfolio, you need to analyze funds before investing in them. So, the question is how do you pick mutual funds? Picking mutual funds is as much an art as it is science. There's no one guaranteed way to pick funds. But if you invert that question, whenever you are analyzing funds, you need to look at certain key metrics to evaluate them. In this video, Karthik explain key ratios like beta, alpha, and Sharpe ratio that are important when you're analyzing funds.
Learn more about all these metrics here: zerodha.com/varsity/chapter/m...
Пікірлер: 53
So many fake fin-influencers selling their course and never gave this much in depth information
Benchmark (95 Marks in physics vs 93 Marks) Beta (less than 1) Alpha (Higher the alpha the better it is) Standard Deviations (Less is best) Sharpe Ratio (Higher it is higher returns we get) Only use in Equity MF Capture Ratio
Karthik rangappa is one of the Best guru of stock market and finance in India....his varsity is just amazing, even school children can understand it such a nice presentation....keep it up ,👍
Most appropriate video for mutual fund investors...many thanks for this series.
Zillion thanks for all the commendable work.
Awesome share
Thank you for these videos! Would love to see a video on Analyzing Debt Mutual Funds.
@Sandeesh_Srikantam
Жыл бұрын
Equity n debt funds analysis are two different ball games. Plz be careful about the difference.
Good, keep it up 👍
Thank you❤
🌱 Thank u sir .....
Ho zerodha can you plz suggest if this measure can be considered for futur selection as the data used is historical return to calculate ratios..
is the calculation of 3.75% correct ? as per the formula it should be = 2.25%
@Ishaajaytravelvlogs
Жыл бұрын
Exactly my question
@Ishaajaytravelvlogs
Жыл бұрын
@zerodha varsity : please confirm calculation
@surajjha8250
11 ай бұрын
formula presentation was wrong
@sumitsahal1108
10 ай бұрын
The formula is ((Return-risk free return)-(benchmark return-risk free return)*beta))={[10-4]-([7-4]*0.75)}=6-2.25=3.75%
Mast video 📹
sir if alpha is negative is the fund investible if betta is less than 1
Generally what is sharpe ratio value of good growth funds?
Can you please make a video about CFA certification ? Like what are the opportunities and growth (especially for an engineering background)
@varsitybyzerodha
Жыл бұрын
Hi Shubham, we'll look into the posssibilities, thanks.
Shouldn’t the Alpha be 2.25% ?
@rahult.s5318
3 ай бұрын
same doubt for me . i did the math and i got 2.25
@rohanjasani7818
3 ай бұрын
Alpha = (10-4) - 0.75(7-4) = 3.75 The formula given is a bit wrong
@anaesthesiabootcamp9115
3 ай бұрын
Also wht is significance of risk free rate...because it cancels itself out. {(10-4)-(7-4)} i.e. 10-4-7+4 So no significance of 4??!!
What is risk free rate?
In the next video, while analysing the funds please consider trynor ratio also. Or let us know why you gave it a skip.
@Attuluri_85
Жыл бұрын
Hoooo
@varsitybyzerodha
Жыл бұрын
Hi Sundeesh, we wanted to cover basic ratios that most people can understand :)
What about tracking ratio?
❤️❤️
I think there is a mistake in the brackets. Correct calculation is: (10% - 4%) - {(7% - 4%) x .75} = 6 - (3 x .75) = 6 - 2.25 = 3.75
@swamidasdalvi4845
4 ай бұрын
So what's new with Zerodha varsity videos? Just take a look at the CAGR formula fiasco in their corresponding video for basic personal finance math🥵 Totally throws a newbie off and misinforms rather than informs. Even the sharpe ratio example is wrong. Fund B is clearly better even with the higher standard dev of 34 as its sharpe is 0.2941 while A's is 0.2857. I don't think there's a case for rounding as the fractions can be compared easily using basic primary level mental math without reaching for the calc.
advance level research
Where to find all these metrics in a single place in order to compare the funds? Is there any particular website/app for it?
@jyotiaggarwal5064
5 ай бұрын
Money control app
Sortino ratio?
Very useful info. One doubt. You said alpha = {(MFR - RFR) - (BMR - RFR)} × beta. So effectively this looks like (MFR-BMR)×beta (Basic algebra). So cannot find the significance of Risk-Free Rate here. Also in the given example, putting values in formula {(10-4)-(7-4)}x0.75 = 3x0.75 = 2.25 and not 3.75!!!!
@shreeshavitthala
2 ай бұрын
Yes there's something wrong here
@shreeshavitthala
2 ай бұрын
I just noticed that the formula is correctly given in varsity textual module
I want to learn trading . I have 30k in my account currently . Can I start investing . If yes teach me how . Please do a class on it .
@varsitybyzerodha
Жыл бұрын
Hi Akash, you can start off by looking at this playlist :) kzread.info/dash/bejne/eZeOuZRtg87IeLA.html
@gokulvrindavan1858
4 ай бұрын
@@varsitybyzerodhawhere are you from sir?
@Bets009
2 ай бұрын
To be honest you can't trade with 30k , you need atleast 6 lakhs to start
Shouldn’t alpha be 2.25% in given example?
@varsitybyzerodha
Жыл бұрын
Hi, no. The calculation is (10-4) - (7-4) X 0.75 = 3.75
@thathapawraroad7539
11 ай бұрын
That means the second brackets (braces) have been wrongly put in the formula shown in the video (4:01).
@gokulvrindavan1858
4 ай бұрын
@@varsitybyzerodha where are you from sir
Sorry tracking error
Another mistake which I found today. In alpha calculation [(10-4) - (7-4)]*0.75 = 2.25 and not 3.75. Are you poor at math and just overwhelmed by oversight!!! Please review and then post.
Un necessary ba। ....ba no use, very hurry fast speeking
क्या आपको हिंदी नहीं आता 😔