What is a good beta score for a fund?
around 1 or
Generally, beta of around 1 or less is recommended. If your fund beta is less than 1, make sure that the fund alpha is high enough so that you can meet your financial goals. If you are fund beta is more than 1, then make sure that you are comfortable with the risk, as per your risk capacity.
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What is alpha and beta in funds?
Alpha measures the return of an asset compared to the underlying benchmark index. Hence, while beta is a measure of systematic risk and volatility, alpha is a measure of excess return.
What should be beta in mutual fund?
The beta of the market or benchmark is always taken as 1. Any beta less than 1 denotes lower volatility and higher than 1 denotes more volatility compared to the benchmark index. For example, if your mutual fund portfolio XYZ has a beta of 0.70, it denotes lower volatility.
What does a beta of 1.1 mean?
Each tenth of a point represents the percentage of volatility. For example, if a stock beta value is 1.1, then it is considered to have a 10 percent greater volatility than the market.
Is a 1.5 beta good?
A beta of less than 1.0 indicates that the investment is less sensitive to the market, while a beta of more than 1.0 indicates that the investment is more sensitive to the market. Generally, the higher the correlation between the investment and the market (as measured by R-squared), the more meaningful is beta.
What is a portfolio beta?
Portfolio beta describes relative volatilityof an individual securities portfolio, taken as a whole, as measured by the individual stock betas of the securities making it up. A beta of 1.05 relative to the S&P 500 implies that if the S&P’s excess return increases by 10% the portfolio is expected to increase by 10.5%.
What is the best new smart beta fund?
Smart Beta is a blend of active and passive investing,following an index but also considering alternative factors.
What does beta mean in reference to mutual funds?
y is the performance of the stock or fund.
What are smart beta funds?
EPS has a low-cost fundamentals-driven large-cap strategy.
Do smart beta funds belong in your portfolio?
While this doesn’t look like the best time to be investing in stocks, there are always places to make money in the market. You can do it without taking too much risk, when you stick to low-beta