When people compare mutual funds, they often look at returns first. A fund that gave 18% returns may look better than a fund that gave 15%. But there is one important question that many investors miss: Did the fund actually perform better than its benchmark? This is where Alpha in Mutual Funds becomes useful. Alpha helps investors understand whether a mutual fund manager added value compared with the fund’s benchmark, after considering the level of risk taken. In simple words, it can help you see whether a fund truly outperformed or simply benefited from a rising market. For example, imagine…
Browsing: investment strategy
When the stock market goes up and down wildly, investors naturally feel worried. If you own a ULIP Fund, seeing your money bounce up and down can cause instant stress. You may wonder if you should stay calm, pull your money out, or rush to change your investments. One of the best parts of a ULIP Fund is the freedom to switch your money between stocks, bonds, and balanced funds. However, just because you can move your money during a market crash does not mean you always should. Making rushed choices when the market drops usually causes more harm than…