Platform For Mutual Fund Schemes Research

SD - Standard deviation measures the dispersion of a set of data points from their mean. In finance, it represents the volatility of an asset's returns over a specific period, indicating the degree of variation or risk associated with the asset. Higher SD implies higher volatility and higher risk.

Beta - Beta is a measure of an asset's volatility in relation to the overall market. A beta greater than 1 indicates that the asset is more volatile than the market, while a beta less than 1 means it is less volatile.

Alpha - Alpha represents the excess return of an investment relative to the return of a benchmark index. It measures an asset's performance on a risk-adjusted basis, indicating the value added by an investment manager's decisions. Higher alpha implies good portfolio performance with respect to benchmark.

Jensen's Alpha - Jensen's Alpha calculates the abnormal return generated by a portfolio over the expected return predicted by the Capital Asset Pricing Model (CAPM). It is used to determine the effectiveness of a fund manager in generating returns above the market-adjusted expectation. Higher Jensen's Alpha implies good portfolio performance with respect to benchmark.

Sharpe Ratio - The Sharpe Ratio measures the risk-adjusted return of an investment. It is calculated by subtracting the risk-free rate from the asset's return and dividing the result by the standard deviation of the asset's returns, indicating how well the return compensates for the risk taken. A Positive Sharpe Ratio implies positive risk-adjusted return of an investment whereas a Negative Sharpe Ratio implies the reverse.

Treynor Ratio - The Treynor Ratio, similar to the Sharpe Ratio, measures the risk-adjusted return of an investment, but it uses beta as the risk measure instead of standard deviation. This ratio indicates how much excess return was generated per unit of market risk. A Positive Treynor Ratio implies positive excess return of an investment generated per unit of market risk whereas a Negative Treynor Ratio implies the reverse.