How To Compare Different Mutual Funds | Risk Ratios in MF | What is Alpha, Beta, SD, Sharpe Ratio?

Most people select mutual funds on the basis of their past returns or looking at some star rating from external sites because they do not really know HOW TO SELECT A MUTUAL FUND? In this video we have explained How to Compare Different Mutual Funds and How To Measure Risk in Mutual Fund with the help of Risk Ratios. We have talked about What is Alpha, Beta, Standard Deviation, Sharpe Ratio and R Square, which will help you to understand the risk taken by a fund manager in Mutual Fund.

Bohot logo ke ye doubt hota hai ki ek fund ko select kaise kare? Alpha kya hota hai? Standard Deviation kya hota hai? Sharpe Ratio kya hota hai? Beta kya hota hai? Ye video unke liye hai. Sahi Mutual fund kaise chune?

#mutualfundsrisk #mutualfundforbeginners #riskratiosinmutualfund

In this video, dive into the world of investment metrics as we demystify key concepts such as alpha, beta, standard deviation, R-squared, and the Sharpe ratio. Learn how these metrics play a crucial role in assessing investment performance and risk, empowering you to make informed decisions in the dynamic landscape of finance. Whether you're a seasoned investor or just starting, this breakdown provides valuable insights into understanding and interpreting these essential measures for a successful investment journey.
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Timestamp:
00:00 Why you should understand Risk Ratios in Mutual Fund
00:30 What is Alpha
01:35 What is Beta
02:05 What is Rsquare
03:14 What is Standard Deviation in mutual fund?
04:47 Sharpe Ratio
06:49 Final Verdict: How to use these ratios to compare different funds
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[unlockyourfinance]

Let me know in the comments any doubt you have and show some love if you have liked the video. Do subscribe to the channel if you want to learn A-Z of equity investment. I am making this playlist as beginner friendly as possible. 💫

Just a correction at 5:30. Thanks to Vidisha for pointing it out. For fund A Sharpe ratio will be (15-5) / 10 = 1.

[Sayak-rm]

Following this series now, great job brother. Learning so much, banate rehna pls. Bohot dur jaoge aap.

[aishwaryalaxmi]

The ratios were so very well explained....quite insightful video 💡...keep posting such videos 😇

[jayatimukherjee]

Beginner friendly and easy to understand! The final verdict really helped. Thanks for making this. 😊

[sedhurajan]

Hi Bro, Which Foreign Index fund is good to invest? "Motilal Oswal Nasdaq 100 Fund of Fund" or "ICICI Prudential NASDAQ 100 Index Fund"? Requesting you to kindly advise me..