SharpeRatio
Definition
A measure of risk-adjusted returns, calculated as the excess return (above the risk-free rate) divided by the standard deviation of returns. A higher Sharpe ratio indicates better risk-adjusted performance. It helps compare funds with different risk levels on a common scale.
Example
If Fund A has a return of 15% with a standard deviation of 12% and the risk-free rate is 6%, its Sharpe ratio is (15-6)/12 = 0.75. A higher ratio indicates better reward per unit of risk.
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.