{"id":3329,"date":"2021-07-20T17:27:06","date_gmt":"2021-07-20T11:57:06","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=3329"},"modified":"2022-12-26T18:48:27","modified_gmt":"2022-12-26T13:18:27","slug":"alpha-and-beta-in-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/alpha-and-beta-in-mutual-funds\/","title":{"rendered":"What Are Alpha and Beta in Mutual Funds \u2013 Difference, Importance and Calculation"},"content":{"rendered":"\n

What if we tell you there are two \u201cgo-to\u201d metrics to gauge the performance and response of the fund against the benchmark? Well, using Alpha and Beta<\/a>, you can assess the financial performance of the funds so that the returns on the investment meet your expectations. <\/p>\n\n\n\n

Before walking ahead, let\u2019s take a concise understanding of the benchmark index<\/a>, as you\u2019ll encounter this term quite often in the article. The SEBI<\/a> has made it mandatory for fund houses to determine a benchmark index. This index could be Sensex<\/a>, Nifty, CNX Midcap, Smallcap, or others. The benchmark index provides a standard point of reference for the comparison of a mutual fund\u2019s returns.<\/p>\n\n\n\n

Now, let\u2019s dive into Alpha and Beta<\/a> in detail.<\/p>\n\n\n\n

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Table of Contents<\/p>\n<\/span><\/div>\n