Dear All,
After having a lots of discussion, i have come across a shortcut route to chose a better mutual fund scheme. One need to compare three parameter as mentioned below.
- Sharpe Ratio:- Higher the ratio the better is the fund return.
- Alpha:- Higher the alpha the better the fund return.
- Standard Deviation:- Lower the SD the better the fund.
There are others factor also which needs to consider but the above three parameter will give a broad understanding.
I would like to check whether my understanding is correct or require any modifications.
Regards,
Amit
CAclubindia
