Table of Contents
How do you compare indexes?
You can compare indexes based on their purpose, sector, components, or historical and present price. Pick a time frame for comparison. Over time the components of an index will change. The price of the index will change throughout every day in which the stock market is open for trading.
How do you compare mutual fund returns?
How to compare mutual funds?
- Benchmark. It provides a yardstick against which you can measure fund performance.
- Investment Horizon. Your investment horizon becomes a driving factor for fund selection and comparison.
- Riskiness. Whenever you invest in any mutual fund, you undertake some risk.
- Expense Ratio.
- Sector allocation.
How do you compare investment returns?
Since you hold investments for different periods of time, the best way to compare their performance is by looking at their annualized percent return. For example, you had a $620 total return on a $2,000 investment over three years. So, your total return is 31 percent. Your annualized return is 9.42 percent.
What is a comparison index?
As the name implies, the ‘Comparison Index’ enables a relative comparison of segmentation results. Here, different field detection results based on FNEA algorithm were compared with reference objects.
How do I choose an index fund?
Broadly, Tracking Error, Cost and size are three critical parameters while choosing Index Fund. The investment mandate of an equity index fund is to track its underlying equity index. Any deviation or error in such tracking is known as tracking error.
When there are two mutual funds How will you compare and take investment decisions?
One of the most common ways of comparing mutual funds is by comparing the Net Asset Value of two funds. Usually, the NAV at the beginning and NAV at the end of period of time is taken into consideration by investors.
How do you analyze mutual funds?
Attribution Analysis
- Step 1: Determine the sector weights for both the fund and the index.
- Step 2: Calculate the contribution of each sector for the fund by multiplying the sector weight by the sector return.
- Step 3: Calculate the rate of return for the fund by adding the contribution of each sector together.