Ratios in Mutual Funds
1. Performance Ratios:
- Sharpe Ratio: Measures risk-adjusted returns.
- Alpha: Indicates excess return compared to benchmark.
- Beta: Measures sensitivity to market movements.
2. Risk Ratios:
- Standard Deviation: Measures volatility of returns.
- Sortino Ratio: Evaluates downside risk.
3. Expense Ratios:
- Expense Ratio: Annual fee charged by the mutual fund.
4. Liquidity Ratios:
- Turnover Ratio: Frequency of buying and selling securities.
5. Yield Ratios:
- Dividend Yield: Percentage of NAV distributed as dividends.
6. Portfolio Composition Ratios:
- Sector Allocation: Distribution across different sectors.
- Asset Allocation: Distribution across asset classes.
7. Performance vs. Benchmark:
- Tracking Error: Measures deviation from benchmark.
These ratios provide insights into various aspects of mutual fund performance, risk, expenses, and portfolio characteristics.