Beta value of MF


Can anyone tell me is simple terms what is beta value of a mutual fund?


Beta is a measure of the volatility of a mutual fund compared to its peers in the market. A beta value of one would mean that the fund’s net asset value moves in accordance with the market dynamics. A beta rating of less than 1 suggests the fund is less volatile and better for


Hi Aswani,

The Beta of a Mutual Fund will tell you how much the Mutual Fund will move in relation to the overall market. So, essentially this will help you judge how volatile the Mutual Fund is. A beta of 1 will mean that the Mutual Fund is moving in line with the markets. If it is less than 1, it is less volatile when compared to the market and is it is more than 1, the Mutual Fund is more volatile than the market.

BB Expert