More to Mutual Fund Investing Than Just Returns

19 Oct 2023

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More to Mutual Fund Investing Than Just Returns

While selecting Mutual Funds, the most common factor used for finalizing investments are historic returns. While returns can be a good measure to judge performance of a scheme, other parameters are equally important while evaluating mutual funds. Let's understand few factors beyond returns which can help us better evaluate MF schemes in detail:

Key factors to evaluate a MF

1. Standard Deviation

Standard deviation measures the investment's risk by quantifying the dispersion of returns from the mean.

2. Beta

Beta measures a mutual fund's sensitivity to market movements, helping investors assess its risk and return potential.

3. Downside Capture Ratio

Downside Capture Ratio assesses a Fund Manager's performance relative to a benchmark during market declines, gauging their ability to limit losses.

4. Sharpe Ratio

The Sharpe ratio in mutual funds assesses risk-adjusted returns, helping investors evaluate a fund's performance relative to its volatility.


Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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