A Jensen's Alpha also known as "Alpha /Jensen's Measure / Jensen's Performance Index" is a measure of portfolio performance. It is used to calculate the return on a portfolio in excess of its theoretical expected return.
Small Cap Stocks are a becoming very popular among Mutual Funds. Small Cap Category of Mutual Funds has increasing AUMs as they have given some exceptional returns in the past. Which are the stocks which Mutual Funds love in Small cap space?
As per the categorisation done by SEBI, the companies from 101 to 250 ranking according to the market capitalization are called as the Mid Cap companies. From these 150 companies which are the top 5 Mid Cap companies in which mutual funds have invested the maximum amount of money? Which are the top mutual funds which have invested in these stocks? This is exactly what we will be studying today.
The Treynor Ratio is also known as Rewards-to-Volatility Ratio. It is a performance metric to determine how much excess return is generated for each unit of the risk taken by a portfolio. In other word, it tries to measure how well an investment has compensated its investors at its given level of risk.
The PEG ratio, often called Price Earnings to Growth, is a valuation metric. It measures the value of a stock based on the current earnings and the potential future growth of the company. In simple words, it is a way for investors to calculate whether a stock is over priced or under priced by considering the earnings today and the future growth rate of the company.