Alpha
Markets
Definition
A measure of an investment's performance relative to its benchmark index. Positive alpha indicates the fund has outperformed its benchmark, while negative alpha means it has underperformed. Alpha is often used to evaluate fund manager skill.
Example
If a large-cap fund returns 15% while the Nifty 50 returns 12%, the fund has generated an alpha of approximately 3%.
Acornia Investment Services Pvt Ltd (ARN: 192746) is an AMFI-registered mutual fund distributor. All investments are subject to market risks. Please read all scheme-related documents carefully. The information on this website is for general informational and educational purposes only and does not constitute financial advice or a recommendation.