Important mutual fund metrics when picking mutual funds

Рет қаралды 67,208

Күн бұрын

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: 56

@kingharji9170 5 ай бұрын

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

@rajun9428 Жыл бұрын

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 ,👍

@shashankraj2690 Жыл бұрын

Most appropriate video for mutual fund investors...many thanks for this series.

@mohdkashif1988 5 ай бұрын

So many fake fin-influencers selling their course and never gave this much in depth information

@aniruddhavaidya4536 21 күн бұрын

True!

@NEVERGIVEUP-hi3em Күн бұрын

Ca ranchana 😒

@tamilkeerthi 3 ай бұрын

Zillion thanks for all the commendable work.

@PramodKumar-qb9mv 3 күн бұрын

'The Black Swan' written by Nissim Nicholas Taleb explores some of these ratios in a very interesting & enlightening way.

@varunmehra3004 9 ай бұрын

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..

@arunms8696 4 ай бұрын

Thank you❤

@prateekznmd Жыл бұрын

Good, keep it up 👍

@abhishek-en7dj Жыл бұрын

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 11 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%

@spandan2843 Жыл бұрын

🌱 Thank u sir .....

@jaydeepagarwal5667 5 ай бұрын

sir if alpha is negative is the fund investible if betta is less than 1

@m_chael09 Жыл бұрын

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.

@abhipatil4844 Жыл бұрын

Awesome share

@rhythm.19 8 ай бұрын

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 5 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.

@RahulSharma-cm3ct Ай бұрын

Generally what is sharpe ratio value of good growth funds?

@Cyber_Wizard 8 ай бұрын

What is risk free rate?

@renuchaudhry2328 Жыл бұрын

Shouldn’t the Alpha be 2.25% ?

@rahult.s5318 4 ай бұрын

same doubt for me . i did the math and i got 2.25

@rohanjasani7818 4 ай бұрын

Alpha = (10-4) - 0.75(7-4) = 3.75 The formula given is a bit wrong

@anaesthesiabootcamp9115 4 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??!!

@Rajan_Kr_Sahu 11 ай бұрын

Mast video 📹

@adfernand987654321es 4 ай бұрын

What about tracking ratio?

@NagarajCruze 7 ай бұрын

Sortino ratio?

@sarthaksharma8389 9 ай бұрын

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 6 ай бұрын

Money control app

@shubhampatel4426 Жыл бұрын

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.

@Sandeesh_Srikantam Жыл бұрын

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 :)

@anaesthesiabootcamp9115 4 ай бұрын

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 3 ай бұрын

Yes there's something wrong here

@shreeshavitthala 3 ай бұрын

I just noticed that the formula is correctly given in varsity textual module

@praddyumnadurge9341 Жыл бұрын

❤️❤️

@subhankarkanungo8373 Жыл бұрын

advance level research

@Ishaajaytravelvlogs Жыл бұрын

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 Жыл бұрын

That means the second brackets (braces) have been wrongly put in the formula shown in the video (4:01).

@gokulvrindavan1858 5 ай бұрын

@@varsitybyzerodha where are you from sir

@akashraven Жыл бұрын

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 :) kzfaq.info/get/bejne/fcmKipVluNHGeIE.html

@gokulvrindavan1858 5 ай бұрын

@@varsitybyzerodhawhere are you from sir?

@Bets009 3 ай бұрын

To be honest you can't trade with 30k , you need atleast 6 lakhs to start

@adfernand987654321es 4 ай бұрын

Sorry tracking error

@kumarsaket6877 3 ай бұрын

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.