

Sharpe Ratio
Sharpe Ratio is a risk to reward ratio, it measures portfolio returns generated
in excess to the investment in riskfree asset, for per unit of total risk
taken. While, positive Sharpe ratio indicates, portfolio compensating
investors with excess returns (over riskfree rate) for the commensurate
risk taken; negative Sharpe ratio indicates, investors are better off
investing in riskfree assets.
Beta
Beta (B) of a portfolio is a number indicating the relation between portfolio returns with
that of the market index i.e. it measure the volatility, or systematic risk, of a portfolio in
comparison to the market as a whole..
Modified Duration
A formula that expresses the measurable change in the value of a security in response
to a change in interest rates. Modified duration of portfolio can be used to anticipate the
change in market value of portfolio for every change in portfolio yield.
Standard Deviation
A statistical measure that defines expected volatility/risk associated with a portfolio.
This explains the variation/deviation from the average returns delivered by the portfolio.
A higher standard deviation means higher volatility (risk) and a lower standard deviation
means lower volatility.
Risk Free Return
The theoretical rate of return of an investment with safest (zero risk) investment in
a country.
Tracking Error
Tracking error indicates how closely the portfolio return is tracking the benchmark Index
return. It measures the deviation between portfolio return and benchmark index return.
A lower tracking error indicates portfolio closely tracking benchmark index and higher
tracking error indicates portfolio returns with higher deviation from benchmark index
returns.
Total Expense Ratio
Total expenses charged to scheme for the month expressed as a percentage to average
monthly net assets.
Average Maturity
Weighted average maturity of the securities in scheme.
Portfolio Yield (Yield To Maturity)
Weighted average yield of the securities in scheme portfolio.
