Investment word of the day: Sharpe Ratio—a key metric to assess risk vs reward. Here’s how to calculate it | Mint

Investment word of the day: To make informed investment choices, it is essential to analyse potential profits and losses. By considering risks, investors can determine whether an investment aligns with their financial goals. And to analyse risks, a Sharpe Ratio is a key metric. What is Sharpe Ratio? The Sharpe Ratio is a tool to … Read more

Investment word of the day: Active funds – How they work and can help you beat markets | Mint

Investment word of the day: Investing in the stock market may be intimidating, especially for beginners. Many struggle with understanding essential stock market terms, making the process complex. Here’s a simple guide to one such term: active funds. Let’s see what active funds are, how they work, and why they matter. What are active funds? … Read more

Investment word of the day: Passive funds — a low-risk option for investors; how do they work? | Mint

Investment word of the day: The volatility and risk in the equities market are known to all, which often prevents people from investing in stocks. However, there is a way to invest in the equities market without the stress of selecting individual stocks and depending on market gains or losses. This simpler way of investing … Read more

Investment word of the day: Rolling returns – Why is it crucial for investors? | Mint

Investment word of the day: While investing in various funds and financial instruments, a need may often arise to track your investment in order to determine how your money is performing over a period of time. Rolling returns is one such measure that helps to estimate the performance of an investment at a certain period … Read more

Investment word of the day: Absolute return | Mint

Investment word of the day: Whenever you make an investment, you will be curious to know how your money is performing over time. There are several measures to check the performance of your investment. One such measure is absolute return. What is absolute return? Absolute return or total return is a measure used to estimate … Read more

Investment word of the day: Compounded Annual Growth Rate — how to calculate CAGR and what are its limitations? | Mint

Investment word of the day: Tracking your investments is essential for understanding how your money performs over time. Skipping this practice will make it difficult to know if you’re on the right track to meet your financial goals. One effective way to measure investment growth is CAGR. What is CAGR? The Compound Annual Growth Rate, … Read more

Investment word of the day: Extended Internal Rate of Return — what is XIRR and why is it crucial for MF investors? | Mint

Anyone investing in various instruments, including a Systematic Investment Plan (SIP) or regular deposits in mutual funds, will need to consistently track returns to assess the performance of their investments and make informed decisions. Tracking investments may seem straightforward initially; however, when multiple investments are involved, looking at returns may become complicated. Hence, the Extended … Read more