In the realm of financial investment, the inherent risk associated with any financial decision is an integral aspect that every investor must consider. Each investor has a unique risk tolerance, making it crucial to accurately assess the potential risk in any given investment. A myriad of tools exist to facilitate this risk assessment process, one of the most prominent being the Value at Risk (VaR). This post aims to provide an overview of VaR, its functionality, and its role in the context of mutual funds.

If you are looking for a way to measure the risk and volatility of a mutual fund, you may have come across the term standard deviation of return. But what does it mean and how can you use it to make better investment decisions? In this blog post, I will explain what the standard deviation of return is, how it is calculated, and why it is important for mutual fund investors.

Jensen’s Alpha has proven to be a useful metric for evaluating the risk-adjusted performance of mutual funds. Although it has its limitations, investors can use it in conjunction with other performance measures to make informed decisions about their investments. In the context of Indian mutual funds, empirical evidence supports the notion that skilled fund managers can deliver excess returns, as evidenced by positive Jensen’s Alphas.