Choose funds offering high risk-adjusted returns: All you need to know

When an investor takes higher risk, ideally, he should get higher returns. The same holds true for your mutual fund manager To evaluate whether the extra risk that a fund manager took has resulted in higher returns, look at the Sharpe Ratio of the scheme The Sharpe Ratio is the risk-adjusted return of a portfolio. A fund with a higher Sharpe Ratio is considered superior compared to its peers If two funds have similar returns, opt for one with a higher Sharpe Ratio, as it shows that the scheme’s excess returns are due to smart investment decisions Don't take a call on a sc.....

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