Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount. So, FRNRX is actually cheaper than its peers from a cost perspective. It has an expense ratio of 1.24% compared to the category average of 1.53%. However, a high NAV does not mean a better performing Mutual Fund. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In India, Mutual Funds continue to remain one of the most popular investment choices. The fund has produced a negative alpha over the past 5 years of -22.9, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.įor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FRNRX has a 5-year beta of 1.64, which means it is likely to be more volatile than the market average. Hybrid Funds: From the list of top 30 hybrid funds, in terms of net asset size, their average sharpe ratio was 0.56 and standard deviation was 6.1. Among these 50 funds, the best fund had sharpe ratio of 5.31, and the worst had 0.51. Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. Average Sharpe Ratio of all these 50 funds was 3.25, and standard deviation of 0.62.
0 kommentar(er)
