Articles in “Performance Metrics” category
16 articles.
2026 (16)
- CAGR vs XIRR for mutual fund returns
CAGR (Compound Annual Growth Rate) and XIRR (Extended Internal Rate of Return) are two methods to compute mutual fund returns. CAGR works for …
- Credit quality buckets in debt mutual funds
Credit quality buckets categorise debt mutual fund holdings by credit rating (AAA, AA, A, etc.). Covers the rating system, the implications for risk and yield, …
- Downside and upside capture ratios
Downside and upside capture ratios measure how much of the benchmark's down moves and up moves a mutual fund captures. Covers the formulas, interpretation, …
- Information ratio in mutual fund performance
The Information ratio measures active return per unit of tracking error, indicating how consistently a fund generates excess return versus its benchmark. Covers …
- Macaulay and Modified duration in bond and debt mutual funds
Macaulay duration is the weighted-average time to receipt of bond cash flows; modified duration measures bond-price sensitivity to interest-rate changes. Covers …
- Maximum drawdown in mutual fund analysis
Maximum drawdown (max DD) measures the largest peak-to-trough decline in a mutual fund's NAV over a measurement period. Covers the interpretation, typical …
- Portfolio turnover ratio in mutual funds
Portfolio turnover ratio measures how frequently a mutual fund manager buys and sells securities, expressed as an annual percentage. Covers the calculation, the …
- R-squared in mutual fund analysis
R-squared measures the proportion of a mutual fund's return variability explained by its benchmark, ranging from 0 to 100. Covers the interpretation, use in …
- Sharpe ratio in mutual fund performance
The Sharpe ratio measures risk-adjusted return by computing excess return per unit of total volatility. Covers the formula, interpretation thresholds, the …
- Sortino ratio in mutual fund performance
The Sortino ratio is a risk-adjusted return measure similar to Sharpe ratio but using only downside deviation (not total volatility). Covers the formula, …
- Standard deviation in mutual fund performance
Standard deviation measures the volatility of a mutual fund's returns, indicating typical deviation from the average return. Covers the interpretation, typical …
- Total Return Index (TRI) benchmarking rule
SEBI's Total Return Index (TRI) benchmarking rule requires mutual fund schemes to compare performance against Total Return Index variants rather than Price …
- Tracking error and tracking difference in passive funds
Tracking error measures the volatility of a passive fund's return deviation from its benchmark; tracking difference measures the average return deviation. …
- Treynor ratio in mutual fund performance
The Treynor ratio measures risk-adjusted return using systematic risk (beta) rather than total volatility. Covers the formula, the comparison with Sharpe ratio, …
- XIRR for SIP returns
XIRR (Extended Internal Rate of Return) is the correct method to compute annualised returns on SIP investments, properly accounting for the time-value of each …
- Yield to Maturity (YTM) in debt mutual funds
Yield to Maturity (YTM) is the expected annualised return on a debt mutual fund if all bonds in the portfolio are held to maturity. Covers the calculation, the …